Leasing vs Buying at Your Buick GMC Dealership

If you wish to avoid high monthly payments, you can lease a car from your local Buick GMC dealership and enjoy the same driving experience. However, you will not own the asset at the end of the lease term. The correct choice between leasing vs. buying varies with your lifestyle and financial goals.

Leasing vs. Buying at Your Buick GMC Dealership

Leasing Offers Lower Monthly Payments but No Equity

Buying a new car costs you the full purchase price, including sales tax. On the other hand, monthly lease payments are primarily based on the vehicle’s predicted depreciation value during the lease term. This makes leasing significantly more affordable, with the average monthly lease payment amounting to $606 for a customer with a good credit score, according to Experian. For comparison, auto loan payments average about $738 monthly.

However, none of your monthly lease payments builds equity. At the end of the lease term, you will have to hand over the keys. In the long term, this makes purchasing your dream car a better financial decision than leasing a new model every year.

Buying Offers Freedom but Adds Maintenance Costs

Purchasing is the way to go if you plan to customize the vehicle with aftermarket parts. With a leased vehicle, you cannot make modifications that void the warranty. If the car is not returned in its original condition at the end of the contract period, the customer will be charged a penalty. Additionally, leased vehicles are subject to a mileage limit, which is usually about 12,000 miles per year, and an additional charge for every excess mile.

While vehicle owners face no usage limits, they pay for maintenance and unexpected repairs once the warranty expires. This can be stressful, as the Bankrate Emergency Savings Report found that 56% of U.S. adults are unwilling to draw from their savings to pay for an unexpected expense like a major repair. If you lease a new vehicle every year, you will be immune to maintenance since you are always driving a vehicle that’s covered by warranty.

Leasing and Buying Offer Unique Tax Advantages to Businesses

When adding a new vehicle to the company fleet, you will receive different tax benefits based on whether you buy or lease. Under section 179, businesses can deduct the full purchase price of a new vehicle in the year of purchase. Tax deductions are capped at $1,220,000 for the tax year beginning in 2024, but the numbers drop quickly for personal vehicles, with SUVs only fetching a deduction of $30,500

If you lease a vehicle, the IRS allows you to deduct the total amount of the lease payment as long as the vehicle is used solely for business purposes. This makes leasing a better choice if you plan on buying a high-cost vehicle.

Lease it or make it yours—find your favorite Buick or GMC model at Ewald Buick GMC of Menomonee Falls in Menomonee Falls, WI. We will assist you with leasing and financing options that suit your budget.

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