If you like to drive newer, safer, more reliable cars, but prefer not commit to a large down payment every 3-4 years, and also don’t drive an enormous amount of miles annually, then a new car lease could be the right choice for you. Leasing is ideal for those who would prefer to escape the annoyance of selling and buying each time they want to get into a new car or truck.
Contrarily, if you prefer long term relationships with a greater sense of commitment and ownership, then buying may be what’s better for you. Car-buying is typically best for consumers who don’t mind driving the same vehicle for more than five years or even until it is no longer suited for the street.
Being aware of the pros, cons, and overall benefits of buying vs leasing a car, truck, or SUV is critical. Be sure to contemplate potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new vehicle financing type for you.
When considering vehicle financing, new vehicle ownership surely comes with many advantages, most associated with complete ownership of the car. You may not be aware, however, there are also some nice upsides of leasing, as well. It’s imperative to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A careful 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.
Vehicle lease payments are often less expensive than car financing and loan payments as the typical lease contract is pretty much renting with the option to purchase near the final payment of your lease term. Keep in mind when leasing that you’ll need a decent credit score, and will be required to carry comprehensive and collision insurance, though the same can be said for the better rate auto loans. Though it might add to monthly payments, it is also smart to select a model with the features you want or need, as personal satisfaction is often priceless.
Auto leases often include regular vehicle maintenance & repair. It’s important to remember this when calculating monthly costs of leasing vs ownership. No matter what make and model you choose, mechanic bills are an unpredictable cost that can quickly add up. And for those who aren’t certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.
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 absolute ownership of the value of the car at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximum investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Maintenance & Repair Costs||Typically Included||Not Included|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Ownership||No Ownership||Pride of Ownership|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Vehicle Customization||Not Available||Available|
|Pre-Owned Vehicles||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Lexus of Albuquerque knows that choosing the right Lexus car and financing option is never easy. Our team of experienced Lexus lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Albuquerque, NM. We look forward to serving you.
I recently purchased an RX 350 from Chuck Cunningham at Lexus of Albuquerque. The transaction started over the phone because I live in Houston and am moving to Northern New Mexico. Chuck didn’t have what I wanted on his lot but he found what I was looking for and took the time to go get it from another lexus dealership. Chuck worked hard for me, jumped through a lot of hoops to please me (self admitting I’m not a very easy person to please) and is sending me away with a perfect car. We made a very fair deal ...
I purchased a vehicle from there a year ago it, was the smoothest transition coming from a dealership that I was loyal too after purchasing 5 vehicles from them. I had been let down after having factory issues with a vehicle and it was ignored, I was in search of a new dealership I could rely on. This year I took my Family member and we had yet another fantastic experience, I can say I have found the dealership I will place my trust in, thank you Kassandra, and Jason for ensuring everything comes together for your customers hard earned money!
Chuck Cunningham truly gave us the VIP treatment when buying our Lexus. He made it easy, relaxing, gave us time to think and discuss, but also was very attentive. Daniel in financing explained everything clearly and in an honest manner let us understand the best choices for us. The stellar service you get here is world's away from other dealships and brands. Thanks to the whole team! Chuck even came by on a Sunday to program my garage door opener!!
Tony Ramat's knowledge and understanding what I wanted lead me to purchase the UX 250h I don't like buying cars for the simple fact its an all day event, Tony Ramat kept the entire process painless, making this car buying experience enjoyably! Thank you again Tony Ramat
Amazing customer service! Jason Gates in sales is great at taking care of his customers. The service dept is excellent, too! I’ve been a loyal customer for many years, and they’ve always been fantastic! Shout out to David Espalin for being the best mechanic and to Juan, my service advisor! You are all top-notch!