Buy vs Lease

What’s the Difference Between Buying and Leasing?

Buying a vehicle is how it sounds—you purchase the car. Many people take out an auto loan to purchase their vehicle. The title is yours once the loan is paid off and you own the vehicle outright. You can do what you want with your car, including adding parts, changing the color, etc.

Leasing acts as a long-term rental. You typically have a lease for two to three years. Leases typically have mileage restrictions and warranties that last the length of the lease. At the end of the lease, you can return the vehicle to the dealership.

Benefits of Leasing

Leasing has its own unique benefits, too. You’ll get to try out the latest technology every few years with a lease. Since leases only last a couple of years and leased vehicles are typically new, you’ll have access to new features.

Trading in a leased vehicle is fairly easy, too. There’s no selling involved; you return it and get on with your day. You’ll also have the option of leasing another vehicle when you return your current leased model.

Leasing usually comes with lower monthly payments than purchasing a vehicle. This lower monthly payment might free you up to step up a trim level or opt for an available feature that you’ve always wanted to try.