Buying vs. Leasing – The F Factors

Life is full of hefty decisions: paper or plastic bags, crunchy or smooth peanut butter, buying or leasing a vehicle. While the first two won’t necessarily have a huge impact on your life, opting to buy or to lease a car is something you’ll want to put some thought into.

And the three main aspects you’ll want to consider can be thought of as the “F-Factors”.


  • Whether you buy or lease, selling price is a fact. When choosing the latter, you’ll want to do your research on how to get the lowest lease payment.
  • Generally speaking, leasing gets you more car for your money. When leasing, you only pay for the depreciation during the lease term.
  • It is usually harder to get approved for a lease than for a loan to buy a car. Be mindful of your credit.
  • Most leased cars are under warranty so repair costs tend to be lower than those of owned cars.
  • Insurance is necessary, no matter the situation. Car insurance rates tend to be higher for leased cars due to the fact that the leasing agency owns them – they want extra protection for their property.
Buying vs. Leasing

Used Car Salesman


  • If you own your own business, you can write-off most, if not all, payments by leasing. Owning a car only allows for a mileage deduction or a portion of the write-off.
  • When leasing a car, you’ll have a mileage cap. If you exceed this mileage, you will accrue additional charges. Buying a car allows for unlimited usage.
  • Leasing requires more of a commitment. When you buy your car, you can trade or sell it at any time. You’ll have to pay termination fees if you choose to end your lease early.


  • If you own your car, you will have to worry about selling or trading it at some point. Leasing allows for more options once the term is up: buy another car, lease another car, lease the same brand of car, etc.
  • Owning a vehicle allows for customization. Leasing a car means that you pretty much have to keep it “as-is”.
  • In both owning and leasing options, you must be attentive to the condition that the vehicle is in. Leasing companies allot for general wear-and-tear, but anything excessive must be paid for. If you choose to trade or sell the car you own, appearance and functionality have a definite impact on value.

Whether you buy or lease, the decision must be made by you and you alone. By taking these factors into consideration, you can see which area of your life holds the most weight and go from there.

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