Should You Buy or Lease?

Signing Finance Documents for Car

If you’re looking for a new commercial vehicle in Northern Chicago or Milwaukee, you may already be aware that leasing can lower your month-to-month costs. However, even though just about everybody wants a lower monthly payment, there is no one-size-fits-all solution to the question, “Should I buy or lease?”. Instead, you’ll need to carefully weigh the pros and cons of both paths. Your neighbors at Lynch Truck Center have laid out everything you need to know!

Leasing vs. Buying: Pros and Cons

No matter what kind of vehicle you’re considering, there are certain factors that you’ll need to keep in mind while comparing leasing vs. buying:

  • Payments and Equity: Leasing allows you to benefit from lower monthly payments. On the other hand, those who finance will build equity with each installment and work toward full ownership. 
  • Mileage and Restrictions: If you lease, you’ll be responsible for maintaining the vehicle while it’s in your possession. You’ll also need to stay within strict mileage limits. If you finance with the intent to purchase, there are fewer restrictions to worry about.
  • Ownership and Customization: When you finance the full cost of the vehicle, it’s yours for as long as you keep up with your monthly payments! That means you can modify it or customize it however you see fit. When you lease, you’ll have to refrain from major modifications. 
  • Flexibility and Options: When you buy, you can either pay off the vehicle and keep it for life, or trade it in for cash when the time feels right. If you lease, you’ll be locked in for a term that usually lasts one to three years. However, returning a leased vehicle is usually easier than selling or trading a vehicle that you’ve financed. 
  • Accessibility and Upfront Costs: Drivers who finance can secure approval even if they have less-than-ideal credit–especially if they’re willing to consider a used car. Leasing generally requires a lower down payment, but you’ll need to be able to prove that you’re a good investment!

If you still have questions about leasing vs. buying, our financing team would be happy to walk you through the decision.

Leasing vs. Buying: Considerations for Commercial Drivers

Many drivers understand the basics of leasing vs. buying, but even those who’ve done their research can run into difficulty where commercial vehicles are concerned. So, should you buy or lease your next work vehicle? Here’s what you’ll want to keep in mind:

  • Customizing a Work Vehicle: Although you might be able to lease a ready-to-go work truck that has all the attachments you need, you’ll need to finance if you plan on doing any serious customization.
  • Tax-Deductible Depreciation: When you purchase a new vehicle with financing, you can write off the depreciation on your taxes. Leasing prevents your business from benefiting from this write-off.
  • New vs. Used Vehicles: Many independent contractors and business owners find that a used commercial vehicle is more than sufficient for their needs. Leasing is generally only an option if you’re looking at new models.
  • Mileage Restrictions: If you’re a transport driver, you might find that the mileage limits on most leasing agreements are overly restrictive. Fees for going over your mileage limit can add up quickly, so you might benefit from paying a little bit more to finance.

Explore Leasing and Financing Options at Lynch Truck Center

Your local Lynch Truck Center is easy to reach from Racine or Waterford, and we deliver coast to coast. Contact us today to learn more about your options or set up a test drive in the model of your choice. Interested in continuing your research? We’ve collected our most useful financing and insurance tips to help you move forward.

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