Lease Vs. Finance: Which Is Right For Your New Car?

Leasing vs. buying a car: which costs less, and which is the overall best option? At our Goodwin Motor Group network of dealerships, we offer both and won't pressure you onto either pathway. Instead, we like to give all our customers an overview of the pros and cons of leasing vs. financing so they can make informed decisions. Scroll down to dive in!

Vehicle Leasing

Leasing means you'll primarily pay for your vehicle's expected depreciation during your lease term. If interest rates fluctuate, monthly lease payments may rise, but not to the same extent as monthly loan payments. Even though you'll be making monthly payments, leasing doesn't allow you to build equity. However, monthly payments are typically lower, which can help keep more money in your pocket (or freed up for investments) in the short term.

Vehicle Financing

Financing means you'll borrow money to pay for your vehicle's full value over time, plus any interest on your loan. Monthly finance payments are usually higher than leasing payments and can rise significantly if federal interest rates climb, but the tradeoff is that you will have the opportunity to build equity as you pay down your loan principal as well as the option to resell your car in the future.

When Is It Better to Lease vs. Finance a Vehicle?

Leasing is best for people who have predictable annual mileage, can keep their cars in like-new condition, are okay with not modifying their vehicles, and want a new daily driver every few years. You might lease a car if your goals are predictable monthly costs, access to newer vehicles, and avoiding depreciation and long-term repairs.

Financing is ideal for people who can pay off their loans relatively quickly, drive more than the average person, enjoy customizing their vehicles with upfits and accessories, or prefer to keep their cars for many years. You might finance a car if your goal is to minimize your transportation costs over a long time.

Do Maintenance Costs Change Based on Whether You Lease or Finance a Car?

In addition to down and monthly payments, you should also weigh the total cost of maintaining any of our new inventory across all dealerships before deciding between leasing vs. buying a car.

Leasing Maintenance

Because leases usually last for 24 or 36 months, you will almost always be driving your leased model while it's covered by a New Vehicle Limited Warranty. This means that major (read: expensive) repairs are both less likely to occur and less likely to be your responsibility.

Financing Maintenance

You'll finance a vehicle that you intend to keep for many years, and sometimes for multiple decades, which means you will eventually need to pay for repairs to brakes, suspensions, transmissions, electronics, and engines. Maintenance costs also tend to rise as a vehicle ages and warranties expire.

Lease vs. Own: Car Experts Weigh In

From Consumer Reports and Kelley Blue Book® to Edmunds and our own technicians, automotive experts widely agree that the only way to choose between leasing vs. buying a car is to examine your financial goals and driving habits. There is no "best" answer to the question, "Is it better to lease or buy a car?" because what works for you may not work for your neighbor or friend.

Lease or Finance Your Next Vehicle at a Goodwin Motor Group Dealership

If you're on the fence about whether to lease or buy a car and would like some personalized guidance, please reach out to a Goodwin Motor Group dealership near you. Our team is always here to help! Browse our current specials for a ballpark estimate of monthly lease and finance payments on models you love.