Land Rover of Naperville Explains: The Difference Between Buying and Leasing a Car

If you’re stuck on whether to buy or lease a car, we understand the struggle. However, we at Land Rover of Naperville are here to help! While we can’t necessarily tell you which option to choose, we can inform you what both options entail, outlining the key differences between the two. Hopefully, by the end of this month’s blog, you’ll have a better understanding and can make a more knowledgeable decision.

Leasing a Car

Leasing a vehicle can be compared to renting the vehicle itself. You don’t pay for the full purchase price of the vehicle, rather, you pay for the depreciation on the vehicle that is expected to occur throughout the term of the lease. Typically, most auto leases are closed-end leases which means that the residual value at the end of the lease is locked in before you even take the car. When you lease a car, your monthly payments are going to be typically lower than it would be if you bought the car itself. This means that you can get into a newer vehicle and one with more options and a higher trim level for less than you would have to pay if you attempted to buy the vehicle.

With a leased vehicle you are also typically going to always be covered under the car’s warranty so you should have no worries about getting your vehicle serviced and not having to pay out of pocket for those services. However, it is to be noted that by leasing a vehicle that does in fact mean that you do not own the vehicle itself.

The most common thing related to leasing a vehicle is mileage limits. These types of restrictions can lead to things getting pretty expensive if you do go over the mileage limit itself. Another important thing to note when it comes to leasing a vehicle is that most lessees walk away at the end of their lease contract with nothing to put forth as a down payment on another car. This means you will have nothing to pay upfront for the next lease.

Buying a Car

The tried and true method of buying a car is typically more straightforward and less restrictive than leasing a car. When you buy a car and finish up with your monthly payments, you then own the car outright. As you begin paying off your car loan you begin gaining equity, which is something that car lessees never get.

As most know, buying a car also does not entail any sort of mileage limits. These sorts of luxuries are not made available to those who lease a car. Additionally, unlike lessees, you can customize your vehicle to your heart’s desire without having to worry about removing those alterations at the end of a lease contract.

Ultimately, buying a car is more expensive in the short term as your monthly payments are almost always higher than the monthly payment of a lease. You also are going to have to pay interest on the entire cost of the car. And the future value of the car is going to be unknown as there is no guarantee that the car’s resale value will be higher or lower than when you purchased it.

What to do?

Leasing allows you to get more car for less money since you only pay for the value of the vehicle that you drive instead of paying for the entire value. On the other hand, buying gives you the freedom of complete ownership and the ability to pay off the vehicle and build up credit. At the end of the day, however, the choice is up to you. But you’re not alone in making that choice with Land Rover of Naperville.

No matter your choice, our sales team at Land Rover of Naperville can help you. Feel free to check out our inventory or come see us at 1559 W. Ogden Avenue to help make your decision easier. You can also click any of the buttons below to begin researching and shopping for your new Land Rover!