Should You Buy or Lease a Car in North Carolina?

Buying and leasing solve different problems. Neither is automatically the better deal — it depends on how long you keep vehicles, how far you drive, and whether you want to own something at the end.

Buying

You finance the full price of the vehicle and own it outright once the loan is paid.

Buying tends to suit you if:

You keep vehicles for several years or longer
You drive high annual mileage
You want to build equity and eventually have no payment
You want to modify the vehicle or use it for work

Monthly payments are usually higher than a lease on the same vehicle, because you are paying for all of it rather than part of it.

Leasing

You pay for the portion of the vehicle's value you use during the lease term, then return it.

Leasing tends to suit you if:

You prefer a newer vehicle every few years
Your annual mileage is predictable and moderate
You want the vehicle covered by warranty for most of the time you have it
A lower monthly payment matters more than ownership

Leases carry mileage limits, and going over them costs money at the end. There are also standards for wear and tear when the vehicle is returned.

Questions that usually settle it

How many miles do you drive a year? High mileage generally favors buying.
How long do you keep a vehicle? Five years or more favors buying. Three years or less often favors leasing.
Do you want to own it at the end? If yes, buy.
Would you modify it or tow with it? Buying gives you the freedom to.
What matters more, monthly payment or total cost? Leasing usually wins on the first. Buying usually wins on the second, over a long enough period.

The cost comparison people miss

Compare total cost over the same time period, not monthly payments. A lease payment is lower, but at the end of a lease you have no vehicle. At the end of a loan you have one you own, with no payment.

Over three years leasing often costs less. Over eight, buying usually costs less. Where your own break-even falls depends on the vehicle and the terms.

How it works here

Whichever you choose, our posted price is transparent and market-based, the same for every guest, and already includes our $788 administrative fee. Our Product Specialists are salaried rather than commissioned, so no one here is paid more for steering you toward one option over the other.

We should be straightforward about this: most of our guests buy rather than lease. Leasing is available, but it is not the bulk of what we do, and we are not going to steer you toward it.

Lease programs vary by model and change with each incentive period, and eligibility depends on credit approval. If leasing is the right fit for how you drive, ask us what is available on the specific vehicle you are considering and we will find out.

Doug Henry Chevrolet Tarboro