Buy vs. Lease

At Ben Eddings, we want to help you make the best decision possible for you, your family, and your wallet. We know it can be confusing to decide if you should lease your new Cadillac, Buick or GMC vehicle. To help you determine if a lease or buy option is the best for you, answer these simple questions below.

OWNERSHIP: I want to own my vehicle.

Based on this choice, you would be best to buy your vehicle. You own the vehicle and get to keep it as long as you want it.

Based on this choice, you would be best to lease your vehicle. You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.

UPFRONT COSTS: I want to pay less upfront costs and/or a lower downpayment.

Based on this choice, you would be best to lease your vehicle. The upfront costs typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees. Often a lease offers $0 security deposit and lower down payments than purchase, and the taxes are lower resulting in less out of pocket.

Based on this choice, you would be best to buy your vehicle. You own the vehicle and get to keep it as long as you want it. Your upfront costs typically include the cash price or a down payment, taxes, registration and other fees. Your down payment may be higher to achieve the same payment as a lease.

MONTHLY PAYMENTS: I want a lower monthly payment.

Based on this choice, you would be best to lease your vehicle. Lease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.

Based on this choice, you would be best to buy your vehicle. Loan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees, but the vehilce is yours.

EARLY TERMINATION: I want to be able to sell my car at any time.

Based on this choice, you would be best to buy your vehicle. You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.

Based on this choice, you would be best to lease your vehicle. If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.

VEHICLE RETURN: I don't want the hassle of dealing with selling/trading my car when I want a different one.

Based on this choice, you would be best to lease your vehicle. With a lease, you can return the vehicle at lease-end, pay any end-of-lease costs, and walk away or get into a new lease vehicle with ease.

Based on this choice, you would be best to buy your vehicle. When you buy your vehicle, you'll have to deal with selling or trading in your car when you decide you want a different one.

FUTURE VALUE: I don't care if I have equity in my vehicle.

Based on this choice, you would be best to lease your vehicle. With a lease, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.

Based on this choice, you would be best to buy your vehicle. The vehicle will depreciate but its cash value is yours to use as you like.

MiLEAGE: I want to drive as many miles as I want.

Based on this choice, you would be best to buy your vehicle. When you buy, you're free to drive as many miles as you want, but higher mileage lowers the vehicle's trade-in or resale value.

Based on this choice, you would be best to lease your vehicle. Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. You can negotiate a higher mileage limit. You'll have to pay charges for exceeding your limits.

EXCESSIVE WEAR AND TEAR: I don't want to have to worry about wear and tear.

Based on this choice, you would be best to buy your vehicle. When you buy, you don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.

Based on this choice, you would be best to lease your vehicle. Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.

END OF TERM: When my term is up, I want to own the car.

Based on this choice, you would be best to buy your vehicle. At the end of the loan term (typically four to five years), the vehicle is yours, you have no further payments and you have built equity to help pay for your next vehicle.

Based on this choice, you would be best to lease your vehicle. At the end of the lease (typically two to four years), you'll have to finance the purchase of the car or lease or buy another.

CUSTOMIZING: I like to modify and/or customize my car.

Based on this choice, you would be best to buy your vehicle. When you buy your vehicle, it is yours to modiify or customize as you like.

Based on this choice, you would be best to lease your vehicle. When you lease, the lessor will want the vehicle returned in sellable condition; any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage, you'll have to pay to have it fixed.