Last year, 25% of all new cars were leased, a steady increase over the past few years as consumers continue to battle rising car prices. If you’re contemplating whether to lease or purchase your next car, consider these advantages and disadvantages of leasing to determine if it’s the best fit for you.  

Advantages of Leasing vs Buying:

• You’re likely to have lower monthly payments.

• You may be able to afford a higher-end vehicle.

• The car is likely to be in good condition.

• There should be coverage under the manufacturer’s warranty.

• Free routine maintenance may be included.

• A leased car may have the latest technology and safety features.

• If you’re a business owner, there may be tax advantages.

• Trading in the car at the end of the lease should be easier.

Disadvantages of Leasing vs Buying:

• You’ll have ongoing monthly payments.

• Your lease may have a mileage limit.

• There may be more up-front costs such as an acquisition fee or security deposit.

• You must keep the vehicle in good condition.

• If you terminate the lease early, it can be costly.

• Permanent modifications and custom parts are typically not allowed.

• You may be responsible for items needed during the lease term, such as new tires.

• Fees, including a return fee to prepare the car for sale, may be added at the end of the lease term.

Your decision may come down to budget and preference. If your goal is to get your loan paid and drive the car for many years to come, then buying may save you money in the long run. However, if you prefer to drive a new car every few years and can afford ongoing payments, leasing might be the better choice.

Whichever option you choose, talk to a Westwood agent to review your car insurance policy to make sure you have the proper coverage with maximum savings.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.