Should I Buy or Lease?

Car salesperson handing over keys

Are you having your own leasing vs. buying debate? Lots of Elk Grove customers have asked our finance department, “Should I buy or lease a car?” Weighing all of the pros and cons for both can be daunting. But we want you to make an informed decision on your next new car purchase, so we’ve put together this helpful list of factors to consider when deciding whether to buy or lease.

Should I Buy or Lease a Car?

Whether you should lease or buy depends on your specific situation. Each has its advantages and disadvantages, so we’ve put together a categorized list of factors to think about when making this decision. If you’re wondering, “Should I buy or lease a car for my Sacramento commute?”, consider the following to help you make your decision:

Leasing vs. Buying – Upfront Costs

  • Buying requires a larger down payment, usually 10-20% of the purchase price. This upfront cost is an advantage if you plan to keep the car for a long time.
  • Leasing needs a smaller down payment, often less than $2,000. This lower upfront cost is more budget-friendly.

Leasing vs. Buying – Monthly Payments

  • Buying has lower monthly payments since you are spreading out the cost over several years. This builds equity and ownership.
  • Leasing comes with higher monthly payments because you are only paying for the vehicle’s depreciation. But it allows you to drive a newer car.

Leasing vs. Buying – Length of Ownership

  • Buying is better if you want to keep the car for more than 3 years. You eventually own the vehicle after paying it off.
  • Leasing is preferable for 2-3 years. You are always driving a newer car under warranty.

Leasing vs. Buying – Mileage Limits

  • Buying has no mileage restrictions. Drive as many miles as you want in Roseville and beyond.
  • Leasing limits mileage, often to 10,000-15,000 miles per year. Going over incurs fees.

Leasing vs. Buying – Maintenance

  • Buying: You pay for all maintenance costs after warranty expiration.
  • Leasing: The lease often covers maintenance for the lease term.

Leasing vs. Buying – At the End

  • Buying: You own the car! You can keep driving it or sell/trade it.
  • Leasing: You return the car to the dealer. However, leases often have purchase options.

Talk to Elk Grove Subaru About Your Options

Our finance department would be happy to walk you through a detailed buying vs. leasing comparison so that you can make the best decision. And, if you found this post helpful, check out our other car buying tips. We’re conveniently located near Folsom, so visit us today to start the journey towards your next new Honda!


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8581 Laguna Grove Dr, Elk Grove, CA, 95757


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