Buying vs Leasing a Car: Which Should You Choose?

It isn’t just about monthly payments. Choosing whether to buy a new car or have one on lease depends on a large number of factors – making it more challenging for many. On one hand, buying a luxury car would mean higher monthly costs (mostly recurring) but you own the vehicle in the end. On the other hand, luxury car leasing is more affordable than buying and lets you drive your dream car minus the hefty costs and hassles.

However, with more people considering leasing than paying for an auto loan, the craze for prestige car lease will not fade anytime soon. And this makes the decision even more challenging. This guide covers important factors you should consider to determine whether you should buy or lease a luxury car. Let’s get started.

luxury car leasing

Monthly Payments

This is one of the first things that come to mind when deciding between buying or leasing a car – how much you can afford to spend every month.

When you buy an exotic car, you are likely to get it financed from a bank, lending institution or credit union. That means you will need to repay the loan via fixed EMIs for several years, depending on the loan tenure. However, a good chunk of this monthly payment goes towards paying interest on the loan, forget the principal amount alone. The higher the rate of interest, the higher will be your EMI.

Monthly/yearly costs involved in buying a new car also include initial down payment, buying insurance, repair & maintenance costs, making customisations in the car, adding safety features, depreciation cost, etc. It is only after you repay the loan in full that you get ownership of the car.

On the other hand, when you take a luxury car on a lease, the monthly payments are typically lower than EMIs you pay for a new car. The lease payment depends on several factors, including:

  • Expected mileage, i.e., the total number of miles you can drive the vehicle every day or throughout the lease period. Most sports car lease companies will offer 10,000 miles for 12 months. However, if you go for higher mileage, the monthly payment will be a little more. In case, you exceed this mileage limit, you will need to pay the dealer additional fees for every extra mile you drive.
  • Length of the lease or the number of months for which you lease the car. Generally, leases are for 12 months
  • Taxes and fees that might be added to the lease payment amount and affect your monthly cost

Some dealers may also require you to make a down payment for supercar leases. The more money you put down initially, the lower your monthly lease payment will be. Despite these cost factors, leasing a luxury car is much affordable than buying and maintaining a new car.

prestige car lease

Choice of Vehicles

When it comes to the choice of luxury cars, leasing is certainly the best way to go. Buying a car is an investment for 2-5 years in most cases. That means you will need to drive the same car for at least two years before you can switch to a new one. However, if you love experiencing a brand new ride year-on-year, luxury car leasing is the ideal option. Typically, lease periods are of 12 months after which you can return the car and have your next new car from any brand or model.

Furthermore, car leasing companies offer a broad range of auto brands and models to choose from within one roof. So, you have the option to lease all the biggest names such as Range Rover, Rolls Royce, Mercedes, Bentley, Lamborghini, Nissan, Audi or Porsche – but without breaking your bank.

On the other hand, you’d require to shop around from one dealer to another to buy a new car. Hence, leasing a luxury car is also more convenient today with such varieties available all in one place.

Maintenance & Taxes

When you buy a new car, it comes with a warranty period, say for 1-3 years. But post-warranty, the owner of the vehicle is required to pay hefty costs for regular maintenance and repairs out of their pocket. Additionally, paying annual taxes for the car is the responsibility of the owner.

But with a prestige car lease, the vehicle is likely to be covered under warranty throughout the lease period. As such, you need not worry about mechanical failures, repairs or routine maintenance during this time. Even if it is accidental damage covered under insurance, both the cost and hassles will be borne by the car leasing company.

This stress-free experience is another primary reason why the demand for car leasing is growing rapidly.

sports car lease


Perhaps one of the best (and only) reasons why people buy a new car is the right to ownership. Once you pay off the auto loan completely, the car is all yours. Drive it and use it any way you want with no limits on mileage or other restrictions.

When you lease a vehicle, you have the opportunity to drive a more expensive and lavish car than what you could actually afford to buy. But you never gain ownership of the car. At the end of the lease period, you need to return the car and sign a new lease on another car. An advantage is that you do not have to go through the cumbersome process of resale when you plan to sell the old car and get a new one.

Purpose of Buying/Leasing

If you are considering a luxury car for personal use, purchasing a new one can be worth your investment. However, if it is for business purposes, vacations or road trips, supercar leases make more sense. This is because leasing involves fewer costs and hassles which is ideal for business travel or holidays.

Buying or Leasing a Luxury Car: Which is Right for Me?

Understanding the pros & cons of luxury car leasing over buying a new vehicle will help you make an informed choice. Know when it is better to buy and when to take on a lease based on the factors discussed above. The bottom line is to make a decision depending on your budget, stability of monthly income, purpose and convenience.