Should I Buy or Lease?

Picking out a new car around East Greenwich can be a complicated process, and at the end of it is the choice between buying and leasing. This is one of the most common questions that we get here at BMW of Warwick, so we’ve laid out the basics of each option below. Neither buying or leasing is better or worse than the other choice, but you should be able to figure out which one suits your specific needs after reading the comparison below. So, if you find yourself asking, “Should I buy or lease?”, read on!

Leasing vs. Buying: Long-Term & Short-Term Costs

• With leasing, you’ll be getting lower monthly payments, with less money spent on taxes and down payments. If you plan on starting a new lease every few years, your monthly payments will be about the same, but you also won’t have to deal with increasing repair or service costs.
• With financing, you can eliminate your monthly payment altogether. Ultimately, if you finance a car and pay it off, you’ll be paying less than a driver who’s paying a monthly lease. It’s also usually more affordable to buy a used car than to lease a new one, so keep this in mind as well.

The Bottom Line: According to statistics, most BMW drivers keep a vehicle for three years on average, and almost all drivers want the latest and greatest features in their car. If this sounds like you, you’ll want to consider leasing as it lets you upgrade your model more frequently than if you buy a car outright. However, if you’re still interested in buying, our finance center can help you explore the available options.

Leasing vs. Buying: Mileage Limits & Restrictions

• Those who finance their vehicles on the road to full ownership don’t have to worry about mileage restrictions.
• Those who lease their vehicles have to stay within set mileage boundaries or pay a fee when their lease is up.

The Bottom Line: If you’re only using your car for a short Providence commute, you’ll find that most leases will suit you just fine. However, if you love road trips or weekend outings with the family, financing might be a better choice.

Leasing vs. Buying: Total Ownership & Customization

• When you buy or finance a vehicle, it’s yours to customize and accessorize however you want. However, adding or modifying parts may void your warranty, so pay special attention.
• When you lease, just as with mileage, there are restrictions in place about customizing and altering your vehicle. The dealership still owns your vehicle and will want to resell it, so they usually mandate that it has to stay as close to factory condition as possible.

The Bottom Line: If you’re interested in outfitting your vehicle with accessories and upgraded parts, you’ll want to stay away from leasing as it heavily restricts your ability to do this.

Leasing vs. Buying: Freedom, Options, & Processes

• Financing offers flexibility. With financing, although you’re under contract, you can sell your vehicle or trade it in at any time as long as you owe less than the vehicle’s worth. You can also usually refinance at a later time for a lower rate, and the vehicle is yours to keep.
• Leasing is easy and convenient. As long as you take good care of your vehicle, you can bring it back to our Warwick lease return center at the end of your term and drive right back out with a new vehicle! You may also be able to buy out the lease if you want to keep your leased vehicle for good.

The Bottom Line: Leasing is a simple process that can be very attractive to Cranston drivers. However, trading in a purchased vehicle has its own benefits as long as you’re comfortable with the reselling process.

Explore Leasing & Financing Options at BMW of Warwick

You can find out everything you need to know about leasing and financing on our website, whether you just want to browse our special offers or start applying for financing. If you have any questions about either of these processes, feel free to contact our office anytime.