Leasing vs Buying a New Car

Leasing vs Buying

Why Should You Lease a New Car?

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.

Why Buy a New Car?

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.

Leasing vs Buying: Which Is Right for You?

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.

Buying: Ownership vs Leasing

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.

pros and cons of leasing vs financing a new car

Monthly Payments

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.

why leasing a car is smart

Maintenance & Repair

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.

is leasing better than financing

Savings vs Investment

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.


Lease Buy
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
APR % Credit-Based Credit-Based
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
New Vehicles Available Available


Lexus Lease and Finance Offers In Albuquerque NM

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.


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Google Nov 18, 2020

My preventative maintenance visit was SO easy! Robert Estrada made the entire process seamless.

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Google Nov 12, 2020

Always professional and prompt. Danny has consistently been helpful and accommodating.

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Google Nov 12, 2020

From sales to service, they have been great to deal with and more than fair on my trade in!

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Google Nov 11, 2020
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Google Nov 11, 2020

Lexus of Abq is a great dealership, I got an awesome deal on a first car for my son with the help of Michaela in service. Thank you, we love the car!

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4821 Pan American Freeway • Albuquerque, NM 87109

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