Leasing or Financing: Which is Better? - OHS Body Shop

Are you on the market for a new car? Leasing and financing are the two most popular options for getting a new car or upgrading your ride today. People often ask which one is the best. But in fact, there is no only correct answer to this question.

Both leasing and financing have their benefits and things you should consider. Your choice will begin on several factors, from your current financial condition to your driving habits and expectations from the car you are getting.

In this article, we shall go through the most important factors of both leasing and financing to make an informed decision.

The 3 things you should know about buying or financing

As we have already mentioned, many things can influence which option of buying a new car will work best for you. 

Some people prefer to stick to the same vehicle as long as possible while others want to enjoy all the newest technologies and therefore change their cars more often. You may be looking for the lowest monthly payments or want to own the vehicle as soon as possible.

In fact, choosing between Leasing and Financing goes down to the 3 main factors:

  • Monthly payments;
  • Overall Costs;
  • Obligations.

Now let’s go over each of those essential factors and see what works best in your case.

Monthly Payments

Whether you lease or choose the financing option, your monthly expenses will consist of:

  • Monthly payments;
  • Insurance

Source lease payments are based on the principle of a vehicle’s depreciation during the time that you drive it; it is a perfect option for those who want to pay as little as possible, even considering the insurance. 

However, you should remember that, unlike financing, leasing will not end up in the ownership of the vehicle. It may be a dealbreaker for some people, but those who like to change their cars more often would probably prefer leasing.

Financing is the perfect option for those who are planning to eventually own the car and drive it for several years after they are done with the payments.

Overall Costs

Monthly payments are, of course, not the only expenses you will have whether you decide to lease or buy.

It all starts with a down payment in case of buying and upfront costs if you decide to lease a vehicle. 

Down payment can reach up to 20% of the car’s overall cost, depending on your credit history. From this point, leasing may be more attractive, especially if your credit score is problematic. However, you should always remember that you will have to face a first month’s upfront payment as well as a downpayment. And all this money goes for a vehicle that you will not own eventually.

In other words, when you choose the financing option, a bigger downpayment can save you a great deal of time and money in the future, while those who choose to lease should make sure that their downpayment is as low as possible.

Repairs and annual maintenance will also be a big part of your spending whether you choose to lease or buy. Your driving experience, habits, and conditions will affect those costs greatly. If we are talking about a brand-new vehicle, it will probably be under warranty for 2-3 years, and it is exactly the duration of an average lease. 

However, once you are done with payments, in case of financing, you will have spare money for the proper maintenance of your loyal yet aging “iron horse.”


Do you feel more comfortable driving the same car or enjoy changing your vehicles from time to time? Your personal preferences and lifestyle will influence your choice between leasing and financing greatly.

On the one hand, leasing allows you to enjoy a new car once in a few years. But if you want to return it before the lease period ends, you may have to face some penalties and additional costs.

At the same time, it is much easier to “get rid” of a financed vehicle even before the loan is entirely paid off, although it will also carry loads of obligations. For example, still, be responsible for any remaining balance owed on your loan.

After all, it is up to you whether to lease or finance option for getting your new vehicle. However, in both cases, proper and regular maintenance will save you a great deal of time, money, and nerves. 

Contact OHS Body Shop or visit one of our branches located in Montana’s Greater Flathead Valley, in Kalispell, Whitefish, Columbia Falls and Polson. Here you will find quality services from professional mechanics, routine maintenance, or urgent repairs for your comfortable and safe driving experience.