Should I Lease or Should I Buy?

It’s time for you to get a new car, and you’re wondering if you’d be better off to lease or buy. We can help. When considering leasing vs. buying, think through your lifestyle and try to forecast what you could face at the end of the lease or loan to know what’s best for you.

How Much Cash is in Your Pocket?

If you’re not exactly rolling in the cash, you might consider leasing for a couple of reasons. First, you’re only financing three years’ worth of car making it cheaper in the long run. Second, most leases require little to no down payment.

If you have a trade-in that’s worth a small amount, you may be able to use it as a down payment on your lease, but if your vehicle is worth a little bit more, perhaps a trade-in for a new or used car with a loan will work best for you.

How Much do You Drive?

If you drive more than 15,000 miles a year, leasing is probably not the best option for you. With a lease, the more miles you include in your agreement, the more it costs. Not to mention that if you go over your allotted miles, it can cost you a great deal more. 

Do You get Attached to Your Cars?

If you like to sell a car every few years, you typically won’t make much on that deal, if any, so leasing might be the best option. However, if you like to drive your cars for a long time and enjoy not having a car payment, buying might be your best option because you can’t rely on getting a good deal when buying a leased car.

Does Color Matter?

Dealerships are often looking to lease cars already on the lot, so you may not get everything you want in a vehicle, such as a particular seat or body color, sunroof or tow package. If you’re looking for specifics, maybe it’s time you look into buying.

Do You Want a Warranty?

If you want a warranty at all times, you’ll either have to trade your car in and buy a new one after three or four years, or look to lease since you’d be covered during the time of your contract. Just remember, either way you’ll have to pay for maintenance out of your own pocket, so the price of the monthly payment may make a difference to you.

Spend the time you need to determine whether leasing or buying is right for you and your growing dreams. You may be able to lease a more luxurious vehicle for less, but you won’t gain much, if any, equity in the car at the end of the lease.  And that might be just what you wanted!

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Related Topics: On The Road , Car Buying , Car Maintenance