Back to all

Lease or Buy?

October 5, 2022



Lease? Or buy? These are the options for St. Johns drivers. It's always a tough question for auto owners, but here is some info that'll help you make an informed decision.

If you buy, you'll pay the full cost of the vehicle, maybe an initial down payment, monthly payments on the balance that pays down the loan principal, and the finance charge.

St. Johns drivers who lease finance the portion of the cost of the vehicle that's used up during the term of the lease. You'll pay some money up front: fees, security deposit, first month's payment and maybe a capital reduction. The monthly payments include a depreciation cost and a finance charge. When the lease is up, you return the vehicle to your local St. Johns area dealership. 

So how do St. Johns drivers decide?

First, how much do you have for a down payment? A lease usually requires a smaller down payment.

How much monthly payment can you afford? Again, lease payments will be much lower for any given down payment.

A lease needs requires better credit, so that's a factor.

How long will you keep the vehicle? St. Johns drivers who keep their vehicles around for a while will pay less if they buy. But just two or three years? Then leasing is the way to go.

If your car might suffer a ding or two, like a work truck would, then buying's better. The auto leasing company will want their vehicle back at the lease end in tip top shape, and if repairs are needed, you'll pay.

How far do you drive in and around the St. Johns area? Important to consider because leases have a mileage limit; if you go over, you pay a hefty charge per mile/kilometer when the lease is up. So high mileage Florida drivers should definitely buy.

Will the car be used in your business? Check with your accountant, but both financing options have different tax benefits, depending on your circumstances.

Over the short term, leasing is much cheaper. Medium term, leasing and buying costs are about the same. Over the long haul, leasing always costs more.

Leases may sound a bit complicated, and the typical lease decision weighs more on the monthly payment rather than price. So sometimes St. Johns leasers may pay on a higher purchase price than a buyer would.

Here is a tip: If the salesman asks if you'll be leasing or buying, say you're not sure yet. Make your best deal, then look at your financing options.

Here's another: With a buy or a lease, if you total the vehicle, you'll owe the full amount of the loan, or the balance of the lease payments. Usually, it's less than the vehicle's fair market value, and that's all your Florida auto insurance company will pay. But ask your St. Johns agent about gap insurance, which pays the difference between fair market value and what you owe. Big consideration for a lease.

Remember, you have to return your leased vehicle in excellent condition and may need to do all the vehicle manufacturer's recommended service and maintenance or face penalties. So see your local advisor at your St. Johns auto repair shop  or Tuffy St. Johns on a regular basis, get the required work done and save the service records. It's well worth it.

Tuffy St. Johns
2770 Racetrack Rd.
St. Johns , Florida 32259
904.230.3363

More articles from Tuffy St. Johns

A Head Start on Starting (Battery Testing)

April 20, 2025

If your vehicle isn't starting or doesn't sound like it used to when you crank it, the culprit may be the battery. You may have left a light on, or something plugged into one of charging ports. Maybe you accidentally left your vehicle in the "on" or "accessory" position when you last got out. M... More

The New Blade in Town

April 13, 2025

If your windshield wipers are streaking and chattering when you turn them on in the rain or snow, it's time for a little "blade renewal." And when it comes to new wiper blades, there are some new designs that are worth a look. One of the latest is called the beam blade. It's different than conve... More

How Cool is That! (Coolant level sensor replacement)

April 6, 2025

Your vehicles engine runs hot. It should, since its a series of little explosions that create the power that gets you going where you want to go. To keep the engine cool, engineers have designed wonderful cooling systems that use liquid coolant, hoses, and a radiator to transfer the heat from t... More