Leasing vs. Buying a Car

Are you debating buying vs. leasing your next Carmel ride? Whether you’re choosing a new or certified pre-owned vehicle, you might wonder when to buy versus leasing a car. This is a major financial decision and it’s something you should consider when it comes to your existing budget.

At Penske Chevrolet, we know buying a car takes time and that’s why we want to simplify everything. In the following guide, our finance team compares leasing vs. buying a car to spotlight which works best for your needs. Learn more below and call (877) 804-8391 to speak to one of our staff!

Buying vs. Leasing a Vehicle

So, when should you buy versus lease a car? Leasing a vehicle near Carmel is similar to renting one for a long-term contract. As a result, you’ll be locked into monthly payments for this entire period. You won’t be able to build equity as you would from outright buying the vehicle. You’ll be paying for the ability to use the model for a specific number of months and the mileage agreed upon between you and the dealership. When the lease ends, you can trade your vehicle in and replace one leased model with another, buy the car, or end your lease.

When to Buy vs. Lease a Car – Pros and Cons

Pros:

• Lower Monthly Payments: When comparing buying vs. leasing, you’ll have smaller down payments if you decide to lease your next Noblesville-area ride.
• Worry-Free Maintenance: Many vehicles come with a three-year lease and most repairs are covered within the terms of an existing lease agreement.
• No Resale Worries: When leasing, you can just return the car. Exceeding the agreed-upon mileage or having wear and tear will result in you having some fees to pay.
• Get a New Car Every Few Years: You can return your vehicle every few years and get the latest models and auto tech.

Cons: 

• Mileage Requirements: If you exceed the agreed-upon mileage, you will have some fees to pay.
• Consistent Monthly Payments: You must maintain these monthly payments to keep your vehicle throughout the lease.

Pros and Cons of Buying a Car

Pros:

• Ownership: Between leasing vs. buying a car, once you’ve finished your monthly payments, you will own the vehicle outright. If you want to sell it off or trade it in, you can do so.
• Vehicle Customization: Leases have rules regarding what can be done with your Chevrolet near Westfield. When you own the car, you won’t have to deal with that.
• No Restrictions: You won’t have to worry about mileage rules, wear and tear, and other issues. Repairs and other services are entirely at your discretion. 

Cons:

• Higher Monthly Payments: Leasing means lower monthly payments for the vehicle you might consider buying.
• Rapid Depreciation: New cars lose between 15% and 50% of their total value in the first five years.
• Larger Down Payment: If you’re trying to get approved for a loan, you might have to make a larger down payment. Leasing your vehicle will mean less chance of this occurring.

Buy or Lease Your Next Vehicle with Penske Chevrolet

Now that we’ve compared leasing vs. buying a car, which makes the most sense for your next Carmel ride? Well, that depends entirely on your budget and existing needs. You should also browse our new and pre-owned vehicle specials to see what catches your eye. Find your next Indianapolis ride with Penske Chevrolet!