Dimmitt Automotive Group Blog

Luxury Car Ownership | Buying vs. Leasing a Car


Purchasing a new ultra-luxury vehicle from one of our family of Dimmitt Auto Group luxury dealerships near Tampa is an important financial decision. The question arises as to whether it is more prudent to purchase or lease a luxury vehicle as this decision will directly affect such factors as monthly payments, annual percentage rate, down payment, and the vehicle’s residual value.

Therefore, it’s important to know the main advantages and drawbacks of each type of purchase option before you head to one of our conveniently located luxury auto dealerships in Clearwater or Tampa. Whether you decide to buy or lease a luxury vehicle from one of our dealerships will come down to how such a decision best fits your lifestyle and budget.


To help you decide whether to purchase or lease your next luxury vehicle, we have compiled this handy and informative guide which explains the differences between leasing versus buying. Of course, our knowledgeable and courteous luxury auto financial experts at our Dimmitt Auto Group dealerships will be more than happy to assist you in making the correct purchase decision that best fits your needs.

Leasing Options Explained

When you lease a vehicle, you are essentially “renting” it from the dealership or finance company. One of the benefits of leasing is that you are paying for the difference between the car’s price and what its estimated value will be at the end of the lease. This is referred to as the “residual value.” This affects how your payments are calculated, how much of a down payment you need to come up with, and the amount financed.

For example, let’s say that you lease a vehicle costing $100,000 for three years. At the end of three years, it’s calculated that the vehicle will be worth 50% of the original purchase price, or $50,000, which is its residual value. Your payments would be determined based on the remaining $50,000 and not the original $100,000. Consequently, in some cases, you may be able to afford a more expensive vehicle for less money. Of course, this is just a basic example. Your particular lease amount will vary.

Another benefit of leasing is that you can take advantage of special offers that require little or no money down and no money due at lease signing. However, just like an outright purchase, when you put money down it will lower your monthly payments.

You will also appreciate the warranty coverage on leased vehicles. Say the manufacturer’s warranty is for three years and you’ve taken out a three-year lease. The warranty then covers you for the full term of the lease. Additionally, you have several choices with a lease compared to a straight purchase. You can keep your luxury vehicle by refinancing the balance at the end of the lease, or you can turn the car in and either lease or purchase another vehicle. This avoids the hassle of having to negotiate the trade-in value as the value of the vehicle has been pre-determined.

The Downside Of Leasing

There are a few drawbacks to leasing you should know about. When you lease a vehicle, you do not accumulate any equity. There are also mileage restrictions to consider. If you go over these mileage caps, you will be charged a certain amount per mile. Depending on your driving habits, this overage could add up quickly. However, if you don’t put a lot of miles on your vehicle each year, this may not be an issue.

Finally, leasing a vehicle means you cannot modify it and must return it in as “like-new” condition as possible, minus any routine wear and tear.

Car Purchase Benefits & Drawbacks

Now that we’ve explored the pros & cons of leasing let’s turn our attention to purchasing a luxury vehicle. By this, we mean that you enter into a simple sales contract with a finance company or lending institution. Once you have agreed on a purchase price for the vehicle, a sales contract will be drawn up that will include any applicable sales tax, fees, and other costs. The annual percentage rate (APR), the amount of money you put down, and the length of the loan will factor into your monthly payment. Most banks require between 10% and 20% of the purchase price as a down payment.

Unlike a lease, when you purchase a luxury vehicle outright, you accrue equity, and you own the car when it’s paid off. And you don’t have to worry about mileage caps, either. However, if you decide to purchase or lease another vehicle, it’s possible that you will owe more than the vehicle is worth. This negative equity is called being “upside down” in the vehicle and could affect how much you may wind up paying for a new car. Of course, if you intend to keep your luxury car for an extended period of time, then this may not be an issue for you.

Make The Right Auto Financing Choice at Dimmitt Auto Group

Regardless of whether you choose to lease or purchase a new luxury or ultra-luxury vehicle from one of our Dimmitt Auto Group luxury automotive dealerships in Tampa Bay, our Dimmitt finance department will exceed your expectations to ensure that you make the right choice for your budget, driving needs, and lifestyle.

It’s our goal to help you achieve owning the luxury automobile of your dreams with special savings on our extensive inventory of new luxury vehicles for sale near Tampa. We invite you to visit one of our conveniently located Dimmitt Auto Group luxury dealerships today.

Dimmitt Cadillac Clearwater               


25191 US Highway N

Clearwater, FL 33763

Dimmitt Cadillac St. Petersburg


3333 Gandy Boulevard N

Pinellas Park, FL 33781

Dimmitt Land Rover


25191 US Highway N

Clearwater, FL 33763

Aston Martin Tampa Bay


3333 Gandy Boulevard N

Pinellas Park, FL 33781

Bentley Tampa Bay


3255 Gandy Blvd

Pinellas Park, FL 33781

McLaren Tampa Bay


3255 Gandy Blvd

Pinellas Park, FL 33781

Rolls Royce Tampa Bay


3255 Gandy Blvd

Pinellas Park, FL 33781

The Sarasota Studio


1518 State Street

Sarasota, FL 34236




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