Buying vs. Leasing

A few of the most important differences between leasing and buying a vehicle!

When you decide you want a new car, you have the choice of getting one by leasing it, buying it with cash or financing it with a loan. Which way is best for you? There are pros and cons to each method. At Bearcat, we think you should have the information that will allow you to make an informed decision based on your specific situation. The following comparatives will give you a clearer understanding of how buying and leasing decisions can affect overall vehicle operating costs, actual equity and ownership issues, and tax and insurance considerations.

One major advantage of leasing over buying is a lower initial cash outlay. With leasing there are no mandatory down payment requirements. A small initial cash outlay is normally all that is required in order for you to take delivery of a vehicle. Also, the better your credit rating, the less will be required at the start of the lease. Usually, you will be asked to provide a refundable security deposit, the first montjly payment, and should you wish, a “capitalized cost reduction,” or down payment. As with most terms in a lease, these items can be structured to meet your specific needs.