Shopping for a new vehicle can be a thrilling and rewarding experience for any driver. Although you have probably spent time thinking about the best features you need in your new vehicle, or what body style you want it to be, you might have forgotten whether you want to buy or lease a car. This is a pretty important decision, as it can impact monthly payments, maintenance, repairs, and even how far the car can be driven in a year.
One of the biggest differences between buying and leasing is that when you purchase, the bank owns the vehicle until you pay off the loan. However, leasing the vehicle means the bank owns the car for the term of the contract. That being said, some contracts have an opportunity to purchase the car outright. Beyond that, there are a few other differences between buying and leasing that may affect your decision.
For example, If you plan on customizing your car ownership is the option for you. Leases do not allow you to customize a vehicle. On the other hand, repairs and maintenance may be covered under the lease whereas owning a vehicle will be your sole responsibility after the warranty is gone. If you’re planning on adding miles quickly on a new vehicle, it’s important to know that lease typically constrains you to about 12,000 miles per year, and owning offers unlimited miles.
If you are interested in learning more important differences between purchasing and leasing a new vehicle, check out the accompanying infographic below.
Infographic created by O’brien Toyota