Cars parked in a parking lot

What are the Differences Between Leasing and Buying a Car?

Purchasing vs Leasing a Vehicle Comparison

Do you need a vehicle? If so, you’re probably wondering whether you should lease or purchase your next ride. With different advantages and disadvantages offered with each, you will want to be confident with your choice. Below, we will cover the key differences between leasing and buying a car so you can compare your options.

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Pros of Leasing a Car

  • Great for drivers that want to change which vehicle they drive every few years
  • Allows drivers to get behind the wheel of recent models
  • An affordable option for drivers that may not have the funds to purchase a car

Cons of Leasing a Car

  • You do not own the vehicle
  • You must stay within the contract requirements, such as not adding decals
  • Extra miles or excessive wear and tear will lead to additional fees
  • When the lease expires, you must return the vehicle to the dealership or choose to purchase at a pro-rated rate

Pros of Buying a Car

  • You own the vehicle and can make any aesthetic adjustments as you wish, such as adding decals
  • You can choose to sell your vehicle for cash
  • Once the vehicle is fully paid for, you may choose to continue to drive it without making monthly payments
  • Any excessive wear and tear or mileage will not lead to extra fees to your car loan provider

Cons of Buying a Car

  • Car payments may be more per month and last longer than if you were to lease the vehicle
  • If financing with a loan, the borrower will also need to pay interest
  • If you choose to sell or trade in your vehicle, it is on you to find a buyer or dealership to purchase it from you

[ READ MORE: How to Choose the Right Body Style for Your Next Car ]

Ready to find the right car at the right price? Explore our affordable and reliable used vehicle selection here at Broadway Credit! Found an impressive candidate? Schedule a test drive with us today! Also, don’t forget to explore the Broadway Credit blog for many interesting and helpful posts every month.

Rear angle of cars parked in a lot