Leasing vs. buying – which option is better for you?

You have a choice to make.

When you’re ready for your next vehicle you can take the traditional road to purchase – and finance – as millions of people do every year.

Or you can lease, which accounts for about 20% of new-vehicle transactions in recent years.

There are advantages to each option which you should know about before you make a decision, because either way you are making a significant financial commitment. That might be perhaps two, three or four years in the case of a lease or around six years on average for a purchase.

To help you understand the differences between purchasing a new vehicle and leasing, we’ve produced a short video that should provide some useful information. “Buying vs. Leasing a Vehicle” appears above and in the Learning Center with other useful auto finance information, helpful videos and more.

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VIDEO TRANSCRIPT

Buying vs. Leasing a Vehicle

Life is full of big decisions, including getting a new vehicle. But it’s difficult to get through life without one.

A question you will have to answer is whether you should purchase a new vehicle or lease it.

There are good reasons to consider both.

Purchasing a vehicle, whether or not you finance it, enables you to treat it as your own, even if you choose to sell it.

And there are other advantages that make this worth considering.

Financing a purchase may be easier than leasing for people with lower credit scores.

You also may get more value from purchasing a vehicle if you plan to keep it after it is paid off.

  • No mileage limits
  • No wear-and-tear restrictions
  • No customization restrictions

And then there is the feeling of accomplishment that goes with paying off a vehicle and not having a car payment.

Or you may find leasing a vehicle a better alternative.

Leasing may allow you to drive a more desirable vehicle for the same monthly payment – and low or no down payment.

Leasing also allows you to change vehicles more frequently if you choose not to purchase, so you can drive a newer vehicle.

Driving a leased vehicle may involve less worry, since leased vehicles have manufacturers’ warranties included, which may result in minimal repair bills.

When your lease contract ends, you will have multiple options …

  • Purchase the current leased vehicle
  • Turn in the lease vehicle and lease again
  • Return the leased vehicle and purchase another vehicle

And with leasing, you never worry about owing more than the vehicle is worth.

Whether you’re purchasing or leasing, Santander Consumer USA has answers … and is ready to help with your next vehicle.

For more videos and smart financial tips, visit our Learning Center at santanderconsumerusa.com.

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