Should I Buy or Lease?
When you are in the market for a new vehicle, you have several decisions to make. In addition to selecting a vehicle that checks all of the boxes on your wishlist, you will also need to decide which financing method is right for your driving needs and budget. Should you buy or lease your next luxury vehicle? In order to make the right decision between leasing vs. buying, think about what your needs are, what you can afford, and what you want for your adventures in Los Angeles and Westlake Village. Whether you decide to lease or buy your luxury car, you can easily take the next steps at whichever Rusnak dealership best meets your needs!
Benefits of Buying
- No Mileage Restrictions: Do you have a long commute to work, or do you like taking long road trips with your friends or family? If you don’t want to have to worry about mileage limits, it is best to buy.
- Total Ownership: Once all of the payments are made, the vehicle is yours. You don’t have to worry about monthly payments for the duration of ownership.
- Customization: If you plan on modifying your car in any way, financing allows you to do so. You have the freedom to make any modifications that you want.
- Ability to Sell: You are also free to sell the car whenever you are interested in something new—even if you still have a long way to go on your loan.
- Less Cost Over Time: In the beginning, it is a bit more costly to purchase a vehicle than to lease it, but ownership costs become more affordable over time as you work toward paying off the vehicle. The longer you own the vehicle, the less expensive it becomes.
Benefits of Leasing
- Lower Payments: Your monthly payment and down payment are usually more affordable when you lease.
- Less Sales Tax: In most states, when you lease, the sales tax will be lower on the vehicle In fact, it’s possible that you will only have to pay tax on the amount you put forth in the down payment and for the monthly payments.
- Trade-Ins: It is easy to lease a new vehicle when the terms of your lease are up. Visit Rusnak Auto Group to turn in the vehicle, take care of any fees that remain, and choose a new vehicle with all of the latest comfort and convenience features. (You may also have the option to extend your lease when your contract draws to a close.)
- Great Coverage: When you lease, your vehicle is typically under warranty for the duration of the lease, so you don’t have to worry about out-of-pocket expenses for maintenance.
- High Approval Rate: It is usually easier to get approved for a lease, even if your credit score is less than ideal.
Is It Better to Buy or Lease a Luxury Car?
Now you understand the basic differences between buying and leasing—but special questions and circumstances arise when you’re thinking about leasing or buying a luxury car. Although either path may be the right choice for you, many feel that it is more cost effective to buy their luxury vehicles outright. Here’s why:
- Depreciation and Lease Costs: Since the costs of a lease are based partly on the vehicle’s expected depreciation, it’s important to note that luxury vehicles often depreciate more quickly than non-luxury models. This difference reflects the fact that more luxury buyers would prefer to buy new; it isn’t a reflection of a luxury vehicle’s true value. Nevertheless, faster depreciation always translates to higher lease costs. If you’re sure that leasing is the right path for you, take advantage of our new lease specials to secure a better price!
- Mileage Considerations: Leasing is most worthwhile when the number of miles that you drive is equal or close to the mileage allotment that’s spelled out in your contract. If you buy a high-end luxury sports car for weekend rides, you might drive far fewer miles than your contract allows—and that means you’ll be paying for miles that you don’t use. And on the other hand, if you think that you’ll drive your new luxury car very often, you’re probably better off financing anyway!
With all this out of the way, it’s worth emphasizing that leasing a luxury car can still result in a much lower monthly payment than buying the vehicle outright. In fact, Los Angeles and Thousand Oaks drivers may find that leasing a luxury vehicle is even more affordable than financing a non-luxury model!
Learn More About Your Financing Options with Rusnak Auto Group
So, should you lease or buy your luxury car? Remember the decision is based entirely on your personal needs and financial situation—and now you have all the information you need to make the right call! To help you save even more, we also offer rotating specials for both leasing and financing. To help expedite the process and get you on the roads of Los Angeles even sooner, you can also prequalify for credit from the comfort of your home. Contact us with any questions about the process, or to learn about our Mercedes-Benz lease deals, Audi lease offers, and other special incentives!
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