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.

You will have no equity or ownership rights to the vehicle at the end of your lease term. When you buy a car with a loan, you are gradually building equity as you pay off your loan. However, you should consider the amount of money that you will have to spend over the life of the loan in order to build equity. Even though you will “own” the car at the time you make your final loan payment, generally the value of the car will be worth much less than the total amount that was spent in order to obtain it. Also, even though the vehicle is an asset, it is a continually depreciating one and will continue to lose value over time.