Leasing vs Buying a New Car

Lease vs Buy

Why Should You Lease a New Car?

If you want to drive newer, safer, more reliable vehicles, not make a sizeable down payment every few years, and also don’t drive an excessive amount of miles every year, then a new car lease should be better for you. Leasing is better for those who prefer to escape the annoyance of selling and buying each time they want to drive a new vehicle.

Why Should You Buy a New Car?

On the other hand, if you like long term relationships with a greater sense of commitment and ownership, then buying should be what’s right for you. Car-buying is typically best for people who won’t mind driving the same car for over five years or even until it is no longer fit for the freeway.

Buy vs Lease: Which One Is Right for You?

Knowing the pros, cons, and overall benefits of leasing vs buying a car is critical. Be sure to contemplate monthly payments, vehicle ownership, repair costs, and potential savings when considering the best new car or SUV financing type for you.

Buying: Ownership vs Leasing

When considering vehicle financing, new car or SUV ownership absolutely comes with many advantages, most associated with outright ownership of the vehicle. You may not be aware, but, there are also a few nice advantages to leasing, as well. It’s essential to consider all financial aspects including down payment, monthly payments, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close inspection of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car or SUV.

leasing vs financing a new car pros and cons

Monthly Payments

Car lease payments are often less expensive than car financing and loan payments as the typical lease layout is more-or-less renting with the option to purchase at the final payment of your lease term. Consider when leasing that you will need a higher credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the lower rate auto loans. Although it might add to your monthly payments, it is also best to choose a model with the features you want or need, as personal satisfaction is often priceless.

Maintenance & Repair

Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of ownership vs leasing. Regardless of what make and model you buy, mechanic bills are an unknown cost that can quickly add up. And for those of us who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing could be the best option for peace of mind.

Investment vs Savings

In general, a new car lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning outright ownership of the value of the car or SUV at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For the best investment on a purchased/financed vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.

	Lease	Buy
New Vehicles	Available	Available
Pre-Owned Vehicles	Not Available	Available
Vehicle Customization	Not Available	Available
Poor Credit Financing	Not Available	Available
APR %	Credit-Based	Credit-Based
Ownership	No Ownership	Pride of Ownership
Down Payment	Smaller Down Payment	Larger Down Payment
Monthly Payment	Smaller Monthly Payments	Larger Monthly Payments
Savings/Investment	Short Term Savings	Long Term Investment
Finance Term	Approx. 2-4 Years	Approx. 3-6 Years
Maintenance & Repair Costs	Typically Included	Not Included

Mercedes-Benz Lease and Finance Offers Near Los Angeles CA

Mercedes-Benz of Beverly Hills knows that choosing the right Mercedes-Benz car and financing option is never easy. Our team of experienced Mercedes-Benz lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Los Angeles, CA. We look forward to serving you.

Mercedes-Benz Lease Incentives

Mercedes-Benz Lease Return Center

Shop our new online inventory, stop by our showroom, or simply call us at (855) 534-3654 and let our team of Mercedes-Benz leasing experts show you why Mercedes-Benz of Beverly Hills is where you should lease or buy your new Mercedes-Benz.

Lease vs Buy Mercedes-Benz Near Los Angeles CA | Mercedes-Benz of Beverly Hills

Cars Oct 6, 2022

As always, Terry McKie takes good care of his clients during the drop off and pick up of their vehicles. His knowledge and expertise of repair, really makes one confident that you're in good hands at this dealership.

Cars Oct 6, 2022

Worked with Clif and he went above and beyond to take care of me. I had no appointment and needed the car back same day, he took care of it and made it happen even when they had to get a part they didn’t have due to an unforeseen complication