Leasing vs. Buying: Which Is Better?

Is buying better than leasing? There’s no “right” solution, but the best method for you will be the one that best suits your needs and makes the most sense for your current circumstances. If you’re upgrading to a new vehicle but aren’t sure whether you should lease or buy, we’ve got you covered. We cover the pros and cons of buying compared to leasing to give you an idea of which option is the best route for you.

Take a look at our guide before making the drive to our dealership from Minneapolis to explore our new inventory!

Leasing | Pros & Cons

Leasing is essentially renting your desired vehicle for a specific amount of time, which is usually a couple of years. There are advantages and disadvantages of leasing, which include:

Pros

• Lower Monthly Payments: You’ll usually have lower monthly payments during your lease period since the payments are determined by how much the vehicle will depreciate during your lease period. So you’re only paying for the amount that the vehicle is expected to lower in value.
• Ability to Upgrade: Once your lease term is up, you have the option to lease a newer model. This gives you the ability to upgrade to a new car every few years.
• Warranty Coverage: You’ll usually still be able to have warranty coverage when leasing a new vehicle, giving you the benefit of warranty protection without having to finance.

Cons

• Mileage Limits: Leased vehicles usually have strict mileage limits, often somewhere around 1,000 miles per month. Exceeding these limits can result in penalty fees when you return the vehicle.
• No Ownership: When you lease a vehicle, you’re essentially renting it for a period of time, meaning you don’t technically own the vehicle.
• Wear & Tear: Along with exceeding mileage limits, you may have to pay for additional wear and tear on your leased vehicle when you return it.

Buying | Pros & Cons

If you go the traditional route of many Chaska-area drivers, you’ll usually get a loan to pay for the vehicle if you don’t pay for the full amount upfront. Here are the unique pros and cons of buying or financing a vehicle:

Pros

• Full Ownership: When you finance a vehicle, you own it 100%.
• No Mileage Limits: Because you own the vehicle you finance, you don’t have to abide by any strict mileage limitations.
• Freedom to Customize: Since you own the vehicle, you can customize it however you’d like, whether you want to add a few accessories or even install a lift kit.

Cons

• Higher Monthly Payments: Since you’re paying for the entire car when you finance a vehicle, you’ll usually have higher monthly payments compared to leasing.
• Depreciation: Vehicles often lose up to half of their value within the first five years after being driven off the lot, so if you go to resell your vehicle, it won’t be worth as much as when you bought it.
• Maintenance: You’ll have warranty protection on your new vehicle, but once the warranty expires, you’ll have to cover maintenance out of your own pocket.

Which option is best for you? If you don’t plan on doing a lot of driving around Chanhassen and like the idea of upgrading every few years, leasing might be more your speed. If you want to own the vehicle, then you’ll want to buy it. Have questions or want to consult with our experts? Don’t hesitate to reach out to our finance center when you visit us!

Buy or Lease Your Next Vehicle in Waconia

Ready to buy or lease your next vehicle with us? Contact us online or visit us in person when you’re ready, and don’t forget to ask us about our new vehicle specials!