Leasing or Financing: Which is Better? | Lexus South PointeMay 25th, 2018
You’ve decided to purchase a Lexus. Now you need to determine which payment option makes more sense for you: Leasing or financing. Luckily, Lexus South Pointe is here to help.
While you might prioritize building up equity in a vehicle, someone else might find it more important to be able to drive a new vehicle every two to three years. There are no right or wrong answers – only differences in what we value as consumers. What’s right for you might be completely wrong for another. That’s why the first step in this process is understanding what your goals are.
What Makes the Most Sense for Me?
Do you like driving a new vehicle every two or three years? Are you always staying current on the latest automotive technologies being released? Do you place a high value on having the latest features available in your vehicle? If so, leasing might be the best option for you.
Do you want to own your vehicle after a few years? Do you want the ability to customize your new vehicle to your preferences? Do you want to drive your Lexus for a long time? If so, financing might be the best option for you.
Leasing VS Financing Cost Comparison
Here are a few things to keep in mind when comparing the costs of leasing and financing. The same Lexus, at the same price, with the same down payment over the same amount of time will typically always offer lower monthly payments when it’s being leased as opposed to financed. Sometimes, these payments are almost 60% lower than when a person is paying off a vehicle loan.
While financing can sometimes equate to lower costs due to fewer fees, that’s assuming the vehicle retains a high trade-in value. If a buyer prioritizes long-term financial savings, financing might be their best option. However, it’s important to keep in mind that the relationship we have with our vehicle changes over time.
As vehicles get older, they require constant upkeep. While you may be in love with your vehicle now, you might not feel the same way a few years down the road. Especially when you have to constantly invest money into maintaining it. With leasing, when the relationship gets stale, you can choose to trade it in for a newer model that doesn’t need as much attention.
Lexus South Pointe Finance Department
Still unsure which is better for you? Let our team of experienced financial advisors help. We’ll go over both processes in more detail and help you decide if leasing or financing your new Lexus makes more sense. Call 780-989-2222 or visit our website to book an appointment with our VIP Concierge.