How to Decide Between Buying and Leasing a Car

Car key laying on paper

Every car shopper has asked themselves this question at one point or another: Should I buy a car or lease it? The good news is there’s no right or wrong answer. The decision depends entirely on your situation. Read on for more leasing vs. buy analysis.

Should You Loan or Lease?

Benefits of Buying

Buying is an excellent option if you want to own the vehicle at the end of your loan. Studies have shown that most U.S. car owners keep their vehicles for a little over 79 months (around 6.5 years). If you buy, you’ll have a financial asset at the end of your term. You can continue to drive your car for years, trade it in toward the purchase of another vehicle, or sell to a third party.

One of the trade-offs of buying a vehicle is the overall cost. Typically, you’ll need a down payment to start with, and monthly payments could be higher over the years. There’s also a good chance that you’ll be responsible for covering the basic maintenance and repair costs from day one.

Once your loan is finished, you’ll be able to use the extra money for household expenses or stash it away to cover maintenance and repairs in the future.

Benefits of Leasing

When you agree to lease a car, you’ll be responsible for lower monthly payments, repairs, and basic maintenance costs for the life of your lease. If you’re a person who enjoys driving a new car every 2-3 years, a lease is a great option. At Union County Kia, we offer three lease end options that make it easy to get into another brand-new vehicle or to own the one you’ve been leasing.

Leases do have mileage and customization restrictions — two things that a car loan agreement does not have. So, if you drive a lot for work or you love to take road trips, a lease might not be the best option.

Explore Your Leasing and Loan Options in Monroe, NC

At Union County Kia, we understand that everyone has different needs and lifestyles. Visit our finance department today to explore your leasing and buying options. Check out our payment calculator to see the monthly difference between buying and leasing.