Getting a Lease vs. Buying: What's the Difference?

Is it time to trade in your current vehicle and upgrade to your next ride for an enjoyable driving experience? At the Shepherd's Chevrolet finance department, we want to make sure you have the information needed to make the financial decision that’s best for you. We understand that not every Wolcottville-area car shopper can purchase their next vehicle, which is why we created a guide to leasing vs. buying. After learning whether to lease or buy, visit our dealership for your test drive.

Leasing vs. Buying: Warranty Coverage

When leasing your vehicle the warranty covers the vehicle for the duration of the lease. When you purchase your vehicle at our Fort Wayne dealership, you may have warranty coverage for the first few years that you own it, but the terms will eventually expire. Or, drivers may have a car with a limited warranty or even no warranty at all. This has a significant impact when it comes to service or repair costs.

Leasing vs. Buying: Cost of Ownership

• Leasing offers drivers lower monthly payments. You can also expect to spend less on your down payment and taxes. If you decide to get a new lease every few years, your payment won’t change much over the years. You also won’t have to worry that much about escalating service or repair costs.
• Financing allows drivers to eliminate their monthly payments. Buying a used vehicle is often more affordable than leasing a new one. Paying off your financed vehicle costs less than continuing to pay your monthly lease payment. With that said, your repair costs can grow as your car ages.

Leasing vs. Buying: Risk of Owners

With purchasing new vehicles, the new car will depreciate (decrease in value) over time. With brand-new vehicles, you can see a 20 to 30 percent drop in value after the first year. Then, the rate of depreciation reduces. Used vehicles do depreciate, but the dip in value is not as large as with new vehicles.

When it comes to leasing, however, the only ones who have to worry about depreciation are the leasing companies. You don’t own the vehicle, which is why you won’t have to worry about that. Whether you buy or lease, you’re not locked in until the end of the term! Keep in mind that you have the option to end your lease early or trade in a financed car.

Leasing vs. Buying: Mileage & Restrictions

• Financing your vehicle means you have full ownership, so you won’t have to worry about any mileage limits or restrictions.
• Drivers who choose to lease their vehicles are required to stay within certain strict boundaries or pay a fee when the lease term ends.

Leasing vs. Buying: Vehicle Personalization

• Purchasing/financing a vehicle means that you can add any genuine OEM accessories to further enhance or customize your vehicle. Whether you want to add new custom floor mats, make your cargo area more organized, or add splash guards, you can do so. Want to save money using aftermarket parts? You can, and you won’t have to worry about voiding your warranty!
• When you lease, you must keep the car close to the factory condition as much as possible. This is because the dealership still owns the vehicle and will resell it after it leaves your hands after the lease-end.

Learn More About Getting a Lease vs. Buying With Shepherd's Chevrolet!

Are you ready to upgrade your Albion commute? Starting exploring our leasing and new vehicle specials, and even get pre-approved for financing right at home! Be sure to take advantage of our online shopping tools that allow you to value your trade and get an estimate on your monthly car or lease payments. Finding your next vehicle has never been easier than with our team! Don’t hesitate to contact our team if you have any questions or would like to schedule your test drive.