top of page
  • Kyle jeanmarie

Lease VS Finance

Updated: Sep 12, 2021

Many of our clients are first time lease buyers or seasoned lease owners. This blog is to simply breakdown the pros and cons of lease vs finance. Both can easily put you behind the wheel in the driver’s seat but have different financial implications.

Leasing a car:

When you lease a vehicle, you are basically paying for the depreciation that the vehicle incurs within the first three or four years. Which means you do have the vehicle for a fixed period. Most leases are structured for 36 months, through the financial institution of the brand. The initial payment to get the wheels rolling varied based on how the deal Is structured. When you hear down payment what does that mean to you? Well for leasing it is simply your first months payment, taxes , dmv ( plates/ registration) and bank fee. The bank varies from each individual lender, no one institution has the same bank fee. Mileage is a factor on lease depending on how much you drive per year.

Benefits of leasing:

The versatility of leasing is that you don’t have to absorb all the depreciation cost when purchasing a new vehicle which means more in your pocket long term. As a lease owner you are always covered by the new car warranty during the industry standard of a 36-month lease. Your payments are also lower than a finance of a new vehicle reason being that you are not leasing / financing the full sticker amount of the new car. Keep in mind that this can also be written off on your taxes if you do own a business. Also, the money that you are paying monthly for leasing does go to the cars value, you have the option to buy out your current lease depending on the payoff amount. Below I will show a quick table of the pros and cons.


  • Lower monthly payment

  • Lower drive off amount (sometimes no money down)

  • Always being able to drive the Latest model

  • New Car manufacture warranty throughout the entirety of lease.


  • Mileage restrictions between 10k-15k per year

  • End of lease disposition fee (can be waived if getting into another vehicle from same company)

  • Looking a new car at the end of lease term

Buying a car:

Before leasing the way to acquire a new car was simply finance the full amount of the vehicle. The traditional down payment, term length and owning the vehicle. Each client differs in how to they use their car. If you the client that can see yourself in this vehicle for a minimum of 5+ years, then financing is the way to go but if you like to change it up every so often financing may not be the best fit for you. A couple of drawbacks when financing a vehicle is depreciation, maintenance cost, cars diminishing value as new products come on the market. Mileage, accidents, and wear & tear on a vehicle all play into a car value when it is time to trade it in. This may lead you down a path pf negative equity, which you do not want to be in. What is negative equity? Negative equity is when your cars value is lower than what you owe to the bank, which then you must come up out of your pocket for the difference.


  • No mileage limit drive as much as you want

  • Satisfaction of owning the vehicle once paid off

  • Doing as you please with your vehicle


  • Higher Monthly Payments

  • Typically, a bigger down payment, which helps lower cost

  • Maintenance cost (oil changes, tires, brakes , etc.)

15 views0 comments


Post: Blog2_Post
bottom of page