Buying vs. Leasing a Car: What’s the Difference?

If you’re like most drivers in Sarasota or Tampa shopping for a new vehicle, then there’s a good chance that you’re working on a budget. This means you probably won’t be paying for your new car up front. Instead, most people who shop here at Cox Chevrolet will choose to finance or lease their new vehicle. So what’s the difference between financing and leasing a car, and should you buy or lease your next car? Cox Chevrolet discusses the in’s and out’s of both vehicle payment methods.

Benefits of Buying Your Vehicle

Many people who come to our dealership from Palmetto and the surrounding areas want to finance their vehicle. There are a variety of different advantages, including:

• Ownership – Each monthly payment you make on a financed vehicle is helping you build equity. By the time you finish paying off the vehicle – usually 36, 48, or 60 months – you’ll own the car outright.
• Customization – When you own your car, you can do what you want with it. Add a custom paint job, put in a custom stereo system, or install performance-enhancing equipment. You won’t be penalized for making it your own.

Is it Better to Buy or Lease a Car Right Now in 2022?

If you’re shopping for a new vehicle right now, you’re probably asking yourself, “Is now a good time to buy or lease a car?”  It’s a hard question to answer right now because, since 2020, there’s been a crisis in automotive production that’s caused prices to skyrocket.

During the pandemic, demand for personal electronics grew exponentially, which created a major shortage in semiconductor chip production. Since the modern car implements thousands of semiconductor chips in its design, a major slowdown has occurred in automotive production as well. Due to scarcity of inventory, there’s high demand, which has led to inflated prices. So, should you buy or lease a car right now in 2022?

If you sign a lease right now, you’ll find that demand is so high that manufacturers and leasing companies are slashing incentives. The deals available for lessees are at a record low, and meanwhile, monthly mileage limits seem to be lowering across the board, meaning that you’re getting less for your money. What’s more, you’ll be making payments on a vehicle with an inflated price, and you’ll continue to make payments on that vehicle’s initial quote, regardless of whether prices go down during your lease term or not. When comparing buying vs. leasing a car in 2022 from a pure value perspective, we recommend financing right now.

Explore All Your Finance Options at Cox Chevrolet

Which is the better option for your next car? Visit Cox Chevrolet to take a test drive, learn more about your different car payment options, and chat with our finance staff to learn more about how car financing works or how the trade-in process works. Contact us to learn more, or visit our showroom in Bradenton today!