Should I Buy or Lease a New Luxury Car?

Ever since Genesis burst onto the automotive scene as a full-fledged luxury automotive brand in 2015, eager buyers have been scrambling to get their hands on one of these stunning, luxurious, and fun-to-drive vehicles from Braman Genesis in Miami.

When shopping for a new Genesis at our Miami luxury car dealership, one of the most common questions we’re asked is: “Should I buy or lease my new Genesis?” Whether it’s better to lease or buy a new luxury car depends on several factors, such as a person’s personal financial situation, credit scores, and lifestyle.

There are certain advantages and disadvantages to leasing a new luxury vehicle, as well as advantages and disadvantages to buying a new luxury vehicle. To help you make the luxury car financing choice that’s right for you, let’s break down the differences between leasing and financing a new car.

Vehicle Leasing vs. Financing: What are the Differences?

When you lease a new Genesis from Braman Genesis, you are essentially “renting” the vehicle for a set time, usually from two to three years. This is similar to someone renting a house or an apartment. You get to use the vehicle, but the car doesn’t “belong” to you. It remains the property of the dealership or leasing entity.

When your car’s lease is up, you simply return it to the dealership. You can then buy or lease a new car. If you really like the car and want to keep it, you can also convert the lease into a purchase.

When you purchase or finance a new car, the opposite is true. You take out a loan at a certain interest rate and make monthly payments to the bank or lending institution. Once the loan is paid in full, you now own the vehicle outright.

Advantages of Leasing

Many car buyers prefer leasing a luxury vehicle in Miami because of the following benefits:

• Lower monthly payment with either low or no money down.
• The opportunity to enjoy driving a brand-new luxury car every two or three years.
• The manufacturer’s warranty covers most maintenance and repair costs during the lease term, which usually is about three years.
• With factory and dealer lease incentives, you may afford a more expensive car than you thought. (Check out our Braman Genesis lease specials here.)
• You have three options at the lease end: Trade it in and lease a new car, convert the lease into a purchase by financing the balance owed, or just turn in the keys and walk away.
• If you use the vehicle for business purposes, you may enjoy certain tax benefits from leasing. (Please speak with a tax professional for more information.)

Disadvantages of Leasing

While leasing a new Genesis in Miami has its advantages, there are some potential downsides to vehicle leasing that you should consider:

• Automotive leases usually come with a “mileage cap” that limits the number of miles you can drive the vehicle. If you drive more than the allotted mileage, you’ll be assessed a penalty.
• You can’t make any significant modifications to the vehicle. At the end of the lease, you’re required to return the vehicle in much the same condition as you first leased it, minus any usual and expected wear and tear.
• You don’t accumulate any equity value in the vehicle.
• You must maintain the vehicle in good condition, ensuring that all regularly scheduled maintenance is performed. And you’re responsible for replacing items such as worn tires.
• If you decide to turn the vehicle in before the lease is up, you may be hit with expensive “early termination” fees.

Advantages of Financing

• You are in a better position to negotiate a more favorable deal by taking advantage of various dealer and manufacturer incentives, such as zero-percent financing.
• You can lower your monthly payment by opting for a longer loan term.
• It’s okay to have less-than-perfect credit compared to stricter credit requirements for leases.
• Over time, you’ll accrue equity in your Genesis luxury vehicle, just as you would if you were buying a house.
• You can drive the vehicle as much as you like without concern for mileage caps.
• You can also make modifications to the vehicle, customizing it to your liking.
• When you pay off the loan, you own the car. You can then keep it, sell it, or trade it in for a new vehicle. You can also pay off the loan early without any penalty.

Disadvantages of Financing

• On average, new cars will depreciate in value the most during the first couple of years of ownership. You’ll absorb this initial depreciation when you first buy your car.
• Depending on how much money you put down, the loan’s Annual Percentage Rate (APR), and other factors, you could wind up paying a higher monthly payment compared to leasing.
• After the manufacturer’s warranty runs out, you’ll be responsible for any major repair bills. However, you do have the option of buying an extended warranty that covers vehicle repairs beyond the manufacturer’s warranty expiration.
• If you owe more than the vehicle is worth, you could be “upside-down” when you trade it in at a car dealership.
• Compared to leases, you’ll generally wind up paying more in interest in the long run.

Make the Right Choice. Choose Braman Genesis.

We know that choosing to buy or lease a luxury car in Miami, FL is a big decision. Our experienced and friendly sales team here at Braman Genesis in Miami is committed to helping you make the lease or purchase choice that’s right for you.

The experts at our Braman Genesis Finance Center will help you every step of the way on your Genesis luxury automobile purchase or lease. We even offer a secure and encrypted online finance application form so you can begin the process of financing or leasing your new Genesis from the comfort of your home or office.

You can also browse our inventory of new Genesis luxury vehicles for sale near Coral Gables, FL online.

If you have any questions about leasing or buying a new Genesis in South Florida, please contact us today at 786-574-3093. We invite you to stop by our Genesis new and used car dealership in Miami, conveniently located at 2001 NE 2^nd Ave., Miami, FL 33137.