Leasing vs Buying

Car Leasing vs. Car Buying
There are many different factors to mull over when deciding whether to lease a car or buy a new car. The processes of each are very different, with car leasing potentially being the more confusing of the two due to its vast terminology. However, below are some simple comparisons to help you decide which avenue is best for you.

Car Ownership
LEASING: When you lease a car, you do not own the vehicle. A leasing company usually owns the vehicle, and lets you "rent" it over a specified period. You get to use it but must return it at the end of the car lease unless you choose to buy it.
BUYING: You own the vehicle and get to keep it at the end of the term.

Up-front Car Costs
LEASING: Up-front costs may include the first month's car payment, a refundable security deposit, a capitalized cost reduction (like a down payment), taxes, registration and fees, and other charges.
BUYING: Up-front costs include the cash price or a down payment, taxes, registration and fees, and other charges.

Monthly Car Payments
LEASING: Monthly car lease payments are usually lower than monthly car loan payments because you are paying only for the vehicle's depreciation during the car lease term, plus rent charges (like interest), taxes, and fees.
BUYING: Monthly car loan payments are usually higher than monthly car lease payments because you are paying for the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.

Early Termination
LEASING: You are responsible for any early termination charges if you end the car lease early.
BUYING: You will be subject to a buy-out charge if you end the car loan early.

Vehicle Return
LEASING: You may return the vehicle at lease end, pay any end-of-lease costs, and "walk away.
BUYING: You will have to sell or trade-in the vehicle when you decide you want a different vehicle.

Future Value
LEASING: The lessor has the risk of the future market value of the vehicle.

Mileage
LEASING: Most car leases limit the number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will likely have to pay charges for exceeding those limits if you return the vehicle, usually 10 to 15 cents per mile.
BUYING: You may drive as many miles as you want, but higher mileage will lower the vehicle's trade-in or resale value.

Excessive Wear
LEASING: Most car leases limit wear to the vehicle during the lease term. You will likely have to pay extra charges for exceeding those limits if you return the vehicle.
BUYING: There are no limits or charges for excessive wear to the vehicle, but excessive wear will lower the vehicle's trade-in or resale value.

End of Term
LEASING: At the end of the car lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another vehicle.
BUYING: At the end of the car loan term (typically 4-6 years), you have no further car loan payments.

If you have additional questions or want to learn more, please use the contact form and one of our Sales Professionals will follow up with you very soon.

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McCarthy Chevrolet
675 North Rawhide Drive Olathe, Kansas 66061
Phone: (877) 460-5408 URL of Map
McCarthy / Morse Chevrolet
9201 Metcalf Avenue Overland Park, Kansas 66212
Phone: (877) 461-6593 URL of Map
McCarthy Chevrolet Lee's Summit
945 SE Oldham Parkway Lee's Summit, Missouri 64081
Phone: (888) 769-1821 URL of Map
McCarthy Olathe Hyundai
681 N. Rawhide Olathe, Kansas 66061
Phone: (877) 465-0829 URL of Map
McCarthy Blue Springs Hyundai
3000 NW South Outer Road Blue Springs, Missouri 64015
Phone: (877) 584-1401 URL of Map
McCarthy Nissan
683 N Rawhide Road Olathe, Kansas 66061
Phone: (877) 517-7514 URL of Map
McCarthy Toyota of Sedalia
3110 West Broadway Boulevard Sedalia, Missouri 65301
Phone: (888) 693-4664 URL of Map
McCarthy Pre-Owned Supercenter
3030 NW South Outer Road Blue Springs, MO 64015
Phone: (816) 256-2362 URL of Map
McCarthy Chevrolet Buick GMC
1550 W Arrow St Marshall, MO 65340
Phone: (660) 530-4625 URL of Map