Is it Better to Lease or Buy a Car? Here’s How to Decide

Blog Highlights

• Leasing vs. Buying: Compare key benefits and things to consider when deciding whether leasing or buying a car fits your needs best.
• Peach State Car Loans: Options for first-time buyers, less than perfect credit scores, and competitive auto loan rates on new and pre-owned vehicles.
• Why Peach State?: Pre-approval, expert guidance, and flexible financing to simplify car buying.

If you’re thinking about buying a new or pre-owned car, there are several options that may work for you, including leasing or buying. The more you know about leasing vs. buying, the more information you'll have to make an informed decision about which option bests fits your needs. Here are some things to consider when answering the question: Is it better to lease or buy a car?

Understanding Leasing

Leasing a vehicle is like leasing an apartment. You rent it from the dealership for a set amount of time and return it when the lease is over. You’ll still need a down payment and must to sign a lease agreement. Once the term is up, you return the vehicle with no further obligation.

How Leasing Works

Instead of signing a purchase contract and getting a car loan, you sign a lease agreement to rent the car for a pre-determined price and amount of time. When it comes to leasing a brand-new car, the monthly payments are typically lower than the monthly payment if you were to buy it.  

Key Benefits of Leasing a Car

• Drive newer car models with latest technology more frequently.
• Lower upfront costs and potentially lower monthly payment.
• No worries about selling the car when the lease is up; simply turn in, buy, or lease a new one.
• Maintenance is typically covered by dealership and/or vehicle warranty.

Factors to Consider

• Mileage limitations, excess wear-and-tear charges, and additional fees. 
• No vehicle equity or ownership in the car at the end of the lease.
• Down payment is required and the amount varies by dealership.
• Higher costs over long period of time and multiple leases.

Understanding Buying

Buying a vehicle means that you acquire ownership of a new or pre-owned car by making an offer to buy it from the owner or dealership. Like a lease, you'll need a down payment but instead of signing a lease agreement, you'll sign a purchase agreement. Once the vehicle is paid in full, you own it and have the option to keep it, trade it in, or sell it at your discretion.

How Buying Works

If you don’t have the cash to buy a car outright, you have the option to work with an experienced auto lender like Peach State to obtain a loan to purchase the vehicle. When it comes to financing a car for a purchase, you'll have flexible repayment options, terms, and down payment requirements. 

Key Benefits of Buying a Car

• No mileage limitations or excess wear-and-tear fees. 
• Lower overall cost when you buy and keep the vehicle.
• Freedom to modify, upgrade, or customize the car.
• Own and drive it for as long as you want.
  
  

Factors to Consider

• Higher monthly payment for newer car models.
• Potentially higher down payment requirements.
• You're responsible for all maintenance costs. 
• You must arrange the trade-in or sale of the vehicle if you wish to sell it.

Auto Loan Programs at Peach State

Peach State has a variety of auto loan options with great rates and flexible terms to help you buy your next new or pre-owned vehicle.

• General Auto Loans: Get competitive rates and flexible terms for new or pre-owned cars with an auto loan from Peach State.

• First-Time Car Buyer Program: Ready, Set, Drive! is our auto loan program tailored for members between the ages of 18-26.¹ This program helps you purchase your first vehicle, build credit, and will have you driving in no time.

• Second Chance Auto Loan: Designed for less than perfect credit scores, Peach State’s Fresh Start Auto Loan may help you get reliable financing while building or rebuilding credit as consistent payments are made over time. 

• Auto Assistance: Peach State members can take advantage of this free, exclusive vehicle buying experience. Auto Assistance assigns members a shopping assistant who researches vehicles, finds the one you're looking for, negotiates the best deal, and even delivers it to the location of your choice! 

Peach State is here to help you find the right financing to purchase your next new or pre-owned vehicle. Visit a branch near you today to speak with someone and learn about more about our auto loans or to get pre-approved before you go shopping. 

1 Certain conditions apply.