When it comes to buying and leasing a vehicle in Austin, there's no universal right answer. The decision whittles down to your own situation based on a variety of variables. Consider your budget, driving needs, lifestyle and credit history before you decide whether to buy or lease. There are auto lenders who can provide you with financing that works best for you, no matter whether you decide to buy or lease your next vehicle. To help with your decision between leasing and buying a vehicle, it's important to consider the pros and cons for each option. For more information, please visit Apple Leasing and speak to one of our leasing specialists to explore you leasing options in Austin.
Even with a low credit rating some leasing companies will still be willing to work with you
If you own a business and use the vehicle only for business purposes, you can claim it as a tax deduction
Pros of Buying New or Used Car
Eventual ownership, freeing you from the pain of payments
After the vehicle is paid off, you're free to sell it at any time
You can drive it at will, never having to worry about mileage limits
No worries over minor mishaps like spilled coffee stains on carpeting or a dog-chewed seat belt
You're free to modify and/or accessorize
Insurance costs are generally lower than leased vehicles
Own the vehicle and can keep it as long as you want it.
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.
They include the cash price or a down payment, taxes, registration and other fees.
They typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.
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.
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.
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.
If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.
You'll have to deal with selling or trading in your car when you decide you want a different one.
You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.
The vehicle will depreciate but its cash value is yours to use as you like.
On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.
You're free to drive as many miles as you want. (But higher mileage lowers the vehicle's trade-in or resale value.)
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.
You don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.
Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.
End of Term
At the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next 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.
The vehicle is yours to modify or customize as you like.
Because the lessor wants 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.