Leasing vs. Buying: What’s Best for Me?

Should I lease or should I buy? Sooner or later, many of us are faced with this scenario. With the availability of financing and competitive lease rates, the question sometimes becomes difficult to answer. Leasing has been available for more than 20 years and continues to grow in popularity. In fact, about one third of cars on the road now are leased. But at the end of the term, you must surrender the vehicle, so buying has its merits. There are many considerations before making the decision — being mindful of budget is chief among them. At BMW Flemington, we are here to help answer your questions, and we’re making the case for both leasing and buying…so that new car is less of a dream and more of a reality.

The Leasing Option

The Novelty of Newness: In the simplest sense, leasing satisfies your desire for something new. Every three years — the average lease term — you are put into a brand-new car. With that, one experiences the safety assurance that comes with a new car; the availability of the latest technologies; and the most recent model of vehicle. If you don’t want to keep a car for more than three or four years, leasing starts to make a lot of sense.

Making the Trade: At the end of your lease term, you may simply trade in your vehicle, and assuming it is in good condition, you’ll owe nothing. Dealers are happy to put you in a newer model of the car that very same day, with little to no hassle.

Budget Friendly: The typical down payment when buying a car is 10%-20% of the full price. If you are considering a $35,000 car, this means upward of $7,500 in initial out-of-pocket. For those who don’t have a lot of disposable income to put forward on a new car or those who prefer lower monthly payments, a lease is a wallet-friendly alternative to buying. Not having a lot of money earmarked for a transportation budget shouldn’t preclude you from accessing the safety and the latest features of a new vehicle.

Easy Maintenance: The majority of lease terms are 36 months and 36,000 miles, which happens to be the typical warranty on most cars for major repairs. In your term as lessee, it is conceivable you might find yourself responsible for only oil changes and tire rotations. That ends up being a big plus for those who do not have discretionary income available when major repairs become necessary, and this is particularly true as vehicles age.

The Buying Option

Wise Investment: Assuming you can swing the initial down payment and monthly payments (if not the entire purchase price outright), buying makes a great deal of sense. You are free to sell it at any time, or trade it in if your situation changes or if you no longer require the vehicle. And you’ll breathe a sigh of relief knowing you aren’t accountable to a leasing company for every ding and scratch on the vehicle. Plus, as with owning a home, you build equity by owning a car — think of it as a savings account with wheels and a sunroof.

Frequent Drivers: If you’re the type of person who likes to drive, takes frequent road trips or has a lengthy daily commute, buying your vehicle makes a lot of sense. Leases are based upon total number of miles driven per year. The average is 12,000 a year, depending on the terms agreed upon. Exceeding these will result in additional charges. When you own your vehicle, you are free to roam.

Custom Made: Buying affords the ability to customize features not typically available on a leased vehicle. You can add a spoiler, purchase new tires or upgrade your rims. Doing so in a leased vehicle can result in penalties or, at the very least, will result in a loss of money spent.

Highway to the Payment-Free Zone: Once your car is paid off entirely — usually in five to six years in finance situations — you, the owner, are responsible only for insurance payments. Assuming you take great care of your car, that essentially means you are looking at saving on transportation costs for quite a bit of time.  

BMW Flemington realizes there are special circumstances for every customer and offers options for both leasing and buying. We’ll help you find a vehicle that fits your budget and your lifestyle.

Tags: Clinton NJ, Flemington NJ, Hopewell NJ, Lambertville NJ
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