Buying vs Leasing a Genesis
From Genesis of Richmond
When it comes to Genesis vehicles, drivers are getting one of the top values in the luxury world. However, many drivers are wondering if they should finance their new Genesis or lease it. To help you decide, the team at Genesis of Richmond thought we would lay out the advantages of both to help determine which will fit your needs best.
MONTHLY PAYMENTS
When you finance a Genesis, the monthly payment is calculated of the total price of the vehicle. The purchase price is calculated throughout a 6- or 7-year time period. When you lease a Genesis, your payment is calculated by the length of the lease. So, the best way to think of it is your payment is determined by how long you will have the car. Depending on your credit and lease program, Lease payments are commonly lower than Loan payments.
CUSTOMIZING
When you finance your Genesis, it is your car. Therefore, you have the ability to customize it however you like. However, whereas when you lease, you borrow the vehicle, so there are limitations to the customization you can make on the car.
MILEAGE
When you lease a vehicle, you are limited to the mileage you can put on a car in the lease agreement. Most mileage terms are between 10,000-15,000 miles per year. In contrast, there is no limit on how many miles you may drive when you buy a Genesis. So, if you drive a lot, a lease may not be best for you.
UP-FRONT COSTS
When speaking of up-front costs, it refers to the down payment, taxes, registration, and other fees. Whether leasing or financing, paying these fees upfront will lower your monthly payments; however, it is not mandatory. In some cases, the bank or leasing company may require a down payment to prove your commitment to the purchase.
END OF TERM
As mentioned above, when you lease a vehicle, you are paying for the time you drive the car, and for some owning their Genesis is important after the loan is paid off. In some cases, new vehicle payment can be less than the maintenance and repairs of the existing vehicle with no monthly payment. Owners may want to consider the cost of ownership on older vehicles vs. payment on a replacement vehicle. At the end of the Lease, although you do not own a car, you have options. You can buy out a car or turn the vehicle in back to the leasing bank.
