Some people treat buying a car like a long-term commitment, while others enjoy the freedom of upgrading every few years to drive the latest model with the newest features.
No matter your style, the big question remains: should you buy, lease or pay cash for your next vehicle?
When shopping for new vehicles, about one-quarter of consumers choose to lease, while the majority choose to finance. From an investment perspective, which choice is best? That depends on your lifestyle, cash flow and personal preferences.1
Three Options For Getting a New Car
Paying Cash: Simple, But Not Always Strategic
If you've saved up enough, paying in full may seem like the most straightforward route, and for many, it is.
Pros
- No monthly payments: You own the car outright
- No loan or lease restrictions: Drive as much as you want, modify the car or sell it—it's all up to you
- No interest charges: You skip the cost of borrowing
Cons
- Large upfront cost: Your savings take a hit
- Depreciation: The car loses value the moment you drive off the lot
Best for: Drivers who want full ownership and long-term value without monthly obligations.
Financing: Own It Over Time
Financing allows you to purchase a car by spreading the cost over time, usually with a down payment and monthly loan payments.
Pros
- Lower upfront investment: Typically, a 20% down payment gets you started
- You gain full ownership: Once the loan is paid off, the car is yours
- Apple FCU offers available: Keep your eye out for limited-time promotions on Auto Loans
Cons
- Interest charged: You'll pay interest over the life of the loan
- Negative equity risk: Early in the loan, you may owe more than the car is worth
Best for: Drivers who want to own a vehicle but need more flexibility with their cash flow.
Leasing: Lower Payments, Less Commitment
Leasing is like renting—ideal if you love driving a new car every few years without the long-term responsibility.
Pros
- Lower monthly payments: Because you're paying for the car's depreciation, not its full value
- Frequent upgrades: Get the latest features and tech every few years
- Minimal maintenance costs: Most leases end before major repairs begin
Cons
- You don't own the car: When the lease ends, you return it or pay to buy it
- Mileage limits apply: Go over, and you'll face fees
- Wear-and-tear charges: Any damage beyond “normal use” can cost you
Best for: Drivers who value new technology, prefer a lower monthly payment and don't put excessive miles on their vehicles.
Which option is best?
There's no one-size-fits-all answer. Your best choice depends on your:
- Monthly budget
- Driving habits
- Long-term ownership goals
- Cash reserves.
If you're thinking of buying a new car, now's the time to get an Auto Loan through Apple FCU!
Now through Sept. 30, enjoy no payments for 90 days when you finance a new or used vehicle or refinance your current auto loan from another lender with Apple FCU.*
Plus, you'll be automatically entered to win up to $1,000 toward your loan payment in our Loan Payment Sweepstakes.**
Whatever your relationship with cars—long-term or short-lived—understanding your options can help you make a decision that fits both your lifestyle and financial future.
- 1Experian.com, June 1, 2023
- *Members who secure a qualified new or used Auto Loan or refinance an Auto Loan AND have their financing disbursed from 07/01/2025-09/30/2025 will enjoy a 90-day payment deferral. Interest will accrue during the 90-day deferment period. When payments begin, the entire monthly payment will be applied to interest until all accrued interest is paid. Your principal balance will not begin to reduce until all accrued interest is paid. To avoid negative amortization, your minimum payments may be higher, or you may be required to make more payments of the same amount to repay all interest charged, as well as the principal balance. Extending the Loan past your original term may increase the total amount of interest you pay.
- **Members who secure a qualified new or used Auto Loan or refinance an Auto Loan AND have their financing disbursed from 07/01/2025-09/30/2025 will be entered into a monthly drawing for a chance to win one (1) Auto Loan payment, up to $1,000. Excludes vehicles financed on-site at an Apple FCU preferred dealer. View Official Rules.
