Buying Vs. Leasing: Which is Ideal For You?

2024 Cadillac XT4

If driving a new vehicle ranks high on your to-do list right now, you have two options: buying or leasing. Which is right for your driving needs in Leander and the surrounding areas? The answer depends on numerous factors. Let’s review the advantages and disadvantages of both possibilities to determine which suits your needs best.

Buying a Vehicle

Purchasing a new car, truck, or SUV to drive in Georgetown and the nearby communities involves applying for an auto loan with a lender. After putting down an initial large payment, you make monthly payments for a specified time period. Obtaining an auto loan also requires paying the interest, which is how the lender makes money.

Pros

  • Own the vehicle outright
  • Build equity as you repay the principal on the loan
  • Can customize the vehicle however you wish
  • Resale and trade-in options

Cons

  • Responsible for maintenance and repairs after the warranty expires
  • High down payment and monthly payments compared to leasing
  • Immediate depreciation–new vehicles lose up to 40% of their value during the first year

If you drive often, enjoy customizing your cars, or simply want to own a vehicle, an auto loan is probably right for you. We at Covert Cadillac recommend applying for financing before you buy since pre-approval tells you exactly what you can spend and may result in a lower interest rate.

Leasing a Vehicle

Leasing a car, SUV, or truck means driving it for a set period, usually 24 or 36 months. When the lease ends, you can re-sign the existing lease, buy the vehicle, upgrade to the latest model, or simply walk away. Entering a lease means paying for its depreciation. You also pay tax, title, dealer documentation, and licensing fees.

Pros

  • Ability to drive a brand-new vehicle at every lease end
  • Lower down and monthly payments compared to auto loans
  • Numerous lease-end options
  • Fully covered, warrantied maintenance for the duration of your lease

Cons

  • Mileage restrictions
  • Mileage fees if you exceed your limit
  • Excessive wear and tear fees
  • No customization or resale options

Leasing could be perfect for you if you don’t drive every day and prefer driving new vehicles. There are also leasing tax benefits for business owners!

Buy or Lease Your Next Vehicle With Covert Cadillac

Ready to start the buying or leasing process? Call (512) 774-6512 or visit us online today. We look forward to pairing you with the perfect vehicle to drive in Cedar Park!