Should I Buy or Lease?

You know you’ll soon be bringing home a new vehicle from Jaguar Newport Beach, but you may be unsure whether leasing or financing will benefit you more. So, should you lease or finance your next Jaguar sports sedan or SUV? Either method is a great way to get the perfect vehicle for your Irvine drives, but your unique needs will determine which of the two is better for you. Explore the differences between leasing vs. buying with this guide from the finance team at Jaguar Newport Beach.

Leasing vs. Buying: Costs

• Leasing costs less in the short-term and more in the long term. From the start, you have lower monthly payments. However, if you start a new lease every few years, you’ll never stop paying toward your vehicle each month.
• Financing costs more in the short-term but less in the long term. You may pay a larger down payment and larger monthly payments when you buy, but once you pay off your loan, you’ll own the vehicle. Then, all you have to do is pay for repairs and maintenance going forward.

The Bottom Line: Most drivers in Costa Mesa keep their vehicles for an average of three years. Then, they’ll move on to a car with the latest features. If this sounds like you, leasing can be a good option that keeps you from having to constantly buy and sell your cars. However, if you see your vehicle as a long-term investment, buying is better. 

Leasing vs. Buying: Mileage & Restrictions

• There are no mileage limits or restrictions for those who finance.
• Leased vehicles may have strict boundaries, or require a fee to be paid if you go over a mileage limit. 

The Bottom Line: If all you’re using your vehicle for is short commutes around the Huntington Beach area, the restrictions that come with leasing won’t be an issue. However, if you enjoy weekend trips or road trips, financing may be better. 

Leasing vs. Buying: Customization

• A purchased or fully financed vehicle is yours to customize as you wish, though adding custom parts or upgrades may void your warranty.
• A leased vehicle must be kept as close to factory condition as possible so that the dealership can resell it once the lease term is over. 

The Bottom Line: If you enjoy the idea of customizing your vehicle or engaging in activities like off-roading that might be rough on it, leasing may create obstacles for you. 

Leasing vs. Buying: Freedom, Options, & Processes

• A financed vehicle can be sold or traded at any time, even if you’re locked into a contract, as long as the vehicle is worth more than you owe. You can also keep it as long as you like.
• A leased vehicle can be easily returned and exchanged for a new vehicle at the end of your lease term; all you have to do is take good care of the vehicle. If you like, you can also choose to buy out the lease if you become attached to the vehicle. 

The Bottom Line: The simplicity of leasing makes this method a major draw for some drivers, but if you’re comfortable with maintaining and reselling a vehicle, it’s not a bad idea to buy. 

Explore Your Leasing and Buying Options in Newport Beach 

If you’re still unsure whether you should buy or lease after reading this article, don’t hesitate to contact us; we’ll be happy to help. You can also check our car buying guide for more info about lease buyouts, trading in a financed car, and more.