Leasing vs Buying a New Car
Why Should You Lease a New Car?
If you want to drive newer, safer, more reliable cars, trucks, or SUVs, not pay a considerable down payment every 3-4 years, and also do not drive an exorbitant amount of miles yearly, then a new car lease could be best for you. Leasing is intended for those who would prefer to escape the hassle of selling and buying each time they want to drive a new car or truck.
Why Buy a New Car?
Conversely, if you like long term automotive relationships with a higher sense of ownership and commitment, then buying may be what's better for you. Car-buying is typically best for shoppers who don't mind driving the same car, truck, or SUV for more than five years or even until it's no longer suitable for the road.
Buy vs Lease: Which One Is Right for You?
Knowing the pros, cons, and overall benefits of buying vs leasing a car is critical. Be sure to examine factors like potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new vehicle financing type for you.
When it comes to vehicle financing, new car, truck, or SUV ownership absolutely comes along with many advantages, most associated with complete ownership of the car, truck or SUV. You may not realize, however, there are also some nice benefits of leasing, as well. It's essential to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough diagnosis of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car, truck, or SUV.
Vehicle lease payments are often less expensive when compared to auto loan and car financing payments as the normal lease layout is pretty much renting with the option to purchase at the final payment of your lease term. Just consider when leasing that you are going to need a good credit score, and will be asked to carry comprehensive and collision insurance, although the same can be said for the lower rate auto loans. Although it can likely add to your monthly payments, it is also best to select a model with the features you need or want, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of leasing vs ownership. No matter what make and model you select, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren't certified mechanics with a full toolset and hydraulic jack in the garage, leasing is likely the best option for peace of mind.
Maintenance & Repair
Generally speaking, a new vehicle lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For the best investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.