Evaluate Your Car Habits and Vehicle Condition

Be honest: Do you keep your car spotless, or is your bumper held on with a bungee cord?

• Leasing requires you to return the car in like-new condition.
• You may be charged for dings, scuffs, or wear unless you purchase XS Wear Protection.
• Buying gives you the freedom to drive it as you please, no penalties.

If your vehicle ends up with a few battle scars, ownership may be smarter.

Consider Your Monthly Budget & Long-Term Plans

Ask yourself:

• Are you looking for the lowest possible monthly payment?
• Or do you want to own your vehicle outright someday?

Leasing

• Lower monthly payments
• Vehicle stays under warranty
• No equity, ongoing payments if you lease again

Buying

• Higher monthly payments upfront
• Eventually payment-free once loan is paid
• All maintenance and repairs are your responsibility after warranty ends

Leasing works great for budget-conscious shoppers who want a stress-free, short-term commitment.

How Much Do You Drive Each Year?

Mileage matters more than you think.

Typical Lease Allowances

• 10,000 / 12,000 / 15,000 miles per year
• Best lease rates usually come with lower mileage caps
• Overage fees: ~$0.25/mile

Tips:

• Don’t overestimate: Unused miles don’t get refunded
• Trade or buyout options often bypass mileage penalties
• If you drive 15k+ miles annually, buying is likely cheaper

Understand Lease Terms & Residual Value

Many lease deals look appealing—until you hit the buyout.

Example:

• A $60,000 vehicle with a 78% residual over 24 months means you're only paying for 22% of the car
• This creates very low monthly payments, but a high buyout cost at lease end
• You can’t negotiate residual—it’s locked in your lease contract

Know your endgame before signing:Lease to return or lease to own?

Cash Upfront: Where It Goes

Purchasing

• Any down payment reduces the loan amount
• Builds equity from day one

Leasing

• Due-at-signing is usually required
• Cash upfront pre-pays monthly payments, not ownership
• Larger upfront = lower monthly payment, but total cost remains the same

Example:

• $68,000 vehicle
• Lease: $2,999 due + $1,156/month = ~$41,616 total
• Add $10,000 more upfront: new payment ~$878, total ~$31,616
• Residual stays the same

Do You Like New Cars Often?

Some drivers love that new car smell every 2-3 years. If that’s you:

• Leasing gives you fresh models with latest features
• No negative equity if you exit cleanly
• Always under warranty
• Small wear/tear fees + $295 disposition fee if you don’t stay brand-loyal

Buying only makes sense if you’re ready to commit for 6+ years.

Credit Score and Debt-to-Income (DTI) Impact

Did you know a lease can look better on your credit than a loan?

• Loan: Full balance shows as debt
• Lease: Only the portion you're financing is reported

Example:

• $40,000 car
• Lease has $28,000 residual
• Only $12,000 appears on your credit—great for DTI when applying for a home loan

Rebates, Loyalty Offers & Lease Specials

Lease deals often include

• Extra rebates for existing lessees
• Disposition fee waivers if staying brand loyal
• Special EV incentives or tax credits (especially on GM models)

These extras can tip the scales toward leasing, especially with promotional programs.

Market Snapshot: 2025 Car Buying Trends

In today’s high-rate environment, more shoppers are leaning toward leasing:

• Factory warranties reduce surprise expenses
• Short-term leases shield buyers from depreciation
• EVs often lease better due to inflated residual values

Vehicles like the Chevy Blazer EV are heavily incentivized—high residuals and bonus cash deals make short leases extremely attractive.