Difference Between Leasing a Car vs Buying a Car
Are you wondering if leasing a vehicle is the right option for you? You’re not alone–many drivers are starting to consider leasing as a viable option as opposed to buying. Leasing can be a great alternative to buying, depending on your credit standing, financial situation, and driving habits. To help you decide which option best fits your needs, we put together a quick overview of the difference between leasing a car vs buying a car. Feel free to contact the team at Mercedes-Benz of Scottsdale with questions or more information about our leasing and buying options.
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Leasing vs Buying
The main differences between leasing vs buying have to do with ownership and what you’re paying for. When you purchase a vehicle, you own it (after it’s paid off). When you lease a vehicle, you never fully own the vehicle, as you’re only paying for the vehicle’s depreciation for the duration of the loan. A leased vehicle is always owned by the company you’re leasing it from. Since you do not own a leased vehicle, you are not allowed to customize the vehicle in any way, which can be a turn off for some drivers.
A vehicle lease contract typically lasts 36 months and most drivers are limited to 12,000-15,000 miles per year. Leased vehicles are always covered under their original warranty, so driving a leased vehicle offers ultimate peace of mind. At the end of the contract, the lessee returns the vehicle, pays for any damages above normal wear and tear, and is then free to either lease another vehicle or buy a different vehicle. Some lease contracts also give the lessee the option to purchase their leased vehicle at a reduced price. Terminating the lease contract early can also come with some potentially hefty fees.
Should I lease my next vehicle?
There are both advantages and disadvantages to leasing a vehicle vs buying one, and one option might be better for some drivers than the other. Simply put, the main benefits of leasing include lower monthly payments, full warranty coverage, and the ability to get a new vehicle every three years. The benefits of leasing can work well for the right driver at the right time, but the same could be said for buying a vehicle. Contact us today to ask about your options!