Buy vs Lease

Getting a new vehicle is a big deal, financially, and emotionally... it's an achievement. A milestone.

When considering a new Volvo, you need to know how any payment factors into your budget. There are plenty of guidelines and affordability calculators available to help answer that question but then what?

If you're like many shoppers you're seeing what kind of vehicle you can afford and if leasing can really get you more vehicle for the money?

Likely you've already heard about mileage limitations and possibly even heard a few horror stories about leasing but have resolved to look into the matter on your own.

BUYING
LEASING
What Are You Paying For?

Purchasing ownership of a vehicle including future value and full usage without restriction.

Purchasing use of a vehicle for a set term with defined restrictions.

What Are The Costs?

Price of the vehicle plus interest over defined term. Maintenance, fuel, insurance, registration, etc.

Inception fee (downpayment) and rental charges for a defined term. Fuel, insurance and limited maintenance.

Are There Benefits?

Freedom to sell, trade, modify/customize/accessorize, ride-share, etc. Outside of the loan, the vehicle and the market value belongs to the owner.

Lower monthly payment. New vehicle every 2- to 3-years. Fixed costs. Business tax benefits for some lesees.

Which Costs Less?

Buying costs less if vehicle ownership is maintained for the long-term and equity is achieved. Buying costs more if vehicles are upgraded frequently.


Leasing holds value to drivers changing vehicles frequently due to mileage, preference, or tax benefit. Leasing costs more if drivers break the lease to acquire a new vehicle, if the lease holder moves, or the vehicle exceeds mileage restrictions.

Are There Restrictions?

Buying a car with a loan usually requires a higher level of insurance to cover the loan. GAP coverage is available too. Otherwise, the legal restrictions are limited to safely operating the public road and what is required to maintain warranty coverage.

Leasing a vehicle typically limits the vehicle usage to being a driver or passenger for a set number of miles over a period of time. Engine or equipment modifications, such as adding a snow plow to a truck, would not be permitted unless strictly defined in the lease agreement. There are, of course, insurance coverage requirements.

Anything Else?

Buying is a straight forward experience many shoppers have used before. Cost of the vehicle plus finance charges paid over time. Bring your own financing or let Continental Volvo have the financial institutions compete for your business.

Leasing is great option if the driving needs are consistent and shopper is aware of future costs. Many lease holders are caught off-guard at lease-end with a coordinated need to find a new vehicle, pay for possible mileage overages, and still have cash to initiate a new loan or lease.

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