Leasing vs. Buying a Car in St. Charles, IL

If you’re in the market for a new truck, SUV, or sedan, you may be wondering if it makes more sense to purchase or lease your next vehicle. The team at Fox Valley Buick GMC put together this overview to help you weigh the pros and cons of purchasing versus leasing. Give us a call at (630) 524-2758 or contact us online if you have any questions. You can search our website to learn more about financing options and to access helpful tools or, if you’re ready to begin the process, pre-qualify for credit via our secure, online application.

Car Leasing

Leasing can offer you the opportunity to get more of what you want or need in your next vehicle at a manageable monthly cost. Leasing can also be a desirable accounting option if you own a business or manage a company fleet.

Pros of Leasing a Car


Affordability boils down to manageable monthly payments and warranty protection against costly repairs during the life of the lease. You can typically upscale your ride under a lease arrangement without significantly increasing your monthly cost. You are also never upside down on a loan payment, and your monthly payments are often lower than a purchase finance option.

Always in a New Vehicle

Lease arrangements typically last for two or three years. Unless you choose to purchase the vehicle at lease maturity, you can get a new vehicle every couple of years that is protected under a manufacturer’s warranty.

Fewer Repair Costs

Most major repairs are covered under the factory warranty ― generally speaking, the first three years or 36,000 miles or the average length of a lease. A lease typically does not cover servicing, maintenance, or repair costs.

Ease of Trade-In

When you choose to lease, you never have to sell the vehicle or worry about trading it in. At lease end, you simply turn it in.

Cons of Leasing a Car

Mileage Restrictions

Make sure you read about and understand your responsibilities outlined in the vehicle’s lease agreement. For example, mileage restrictions may apply that can translate to extra charges if you exceed them.

Wear and Tear Costs

Be aware that any repairs needed to the vehicle upon its return may be subject to added charges.

You Do Not Own the Vehicle

When the lease term is over, your rights to the vehicle terminate and you’ll need to turn it in.

Pros of Buying a Car


If you secure a finance purchase plan, you own the vehicle outright when the loan is paid in full. In the long run, owning a car is less expensive because your loan payments are being applied towards equity.

No Mileage Restrictions

With a purchase finance arrangement, mileage usage is not restricted.

No Appearance Restrictions

If you get into an accident and experience damage to the vehicle before your financing period ends, you are not penalized. However, you are responsible for any repairs. Your loan payments continue, regardless, until maturity.

Vehicle Trade-In Value

If you decide to trade in your vehicle prior to the maturity date of your auto loan, you will be responsible for any difference between the trade-in value and the outstanding balance on your loan. Any surplus belongs to you and can be applied toward your next vehicle purchase.

Cons of Buying a Car


There is a common saying that a new vehicle begins to depreciate the minute you drive it off the lot. According to, a vehicle will lose 15 to 20 percent of its value each year of ownership. The rate of depreciation is highest in that first year of ownership, because the price you paid for it is a retail price and now the vehicle is reflecting its wholesale value. You also paid taxes and other fees. One way to counteract the steep drop in value is to choose a vehicle that is in high demand. Cars in high demand are often in low supply and, thus, hold their value longer.

Higher Payments

When you purchase a new vehicle, if you don’t buy it outright you will have a down payment plus monthly payments during the term of the loan. Be aware that the down payment and monthly payment on a purchase plan are typically higher than a lease arrangement.

Length of Time to Financially Benefit

It stands to reason that if you pay less for a vehicle ― you buy it outright or take out a three-year loan versus a five- or six-year loan ― the length of time before you financially benefit from owning it is shorter.

Added Repair Costs

As your vehicle ages, you’ll likely experience repair costs ― or more frequent repair costs. If your monthly maintenance expenses exceed the monthly cost of a new vehicle, perhaps it’s time to consider a new vehicle.

Which One Is Right for Me?

The decision to purchase or lease your next vehicle is up to you. Do you have a trade-in to apply to the purchase price of a new vehicle? Is your business paying the costs for a vehicle for your professional use? Maybe you want to build credit through an auto loan ― or you just prefer to own a vehicle and maximize your investment by holding onto it.

At some point, you’ll need to look for a vehicle to replace the one you currently have. At Fox Valley Buick GMC, we’re here to help you make the best decision for your needs, whether it’s a new vehicle purchase, used car purchase, or lease arrangement.

Additional Quesitons?

Contact A Specialist

Let’s Get Started!

Search our new inventory or used vehicle inventory at Fox River Buick GMC in St. Charles, IL, to find the vehicle that’s right for you. Pre-qualify for credit here or give us a call at (630) 524-2758 or contact us online if you’re ready to take it for a test drive.

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Main 630-338-0202 Sales 630-338-0202
1421 E Main St
Saint Charles, IL 60174
Contact Us

Contact Us

Main 630-338-0202 Sales 630-338-0202
1421 E Main St
Saint Charles, IL 60174


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Save some vehicles to get started!
Fox Valley Buick GMC 41.9172, -88.2977.