Why Should You Lease a New Car?
If you prefer to drive newer, safer, more reliable cars, trucks, or SUVs, but not pay a big down payment every 3-4 years, and also do not travel an exorbitant amount of miles every year, then a new car lease could be the right choice for you. Leasing is better for people who would prefer to avoid the hassle of buying and selling every time they want to drive a new car.
Why Buy a New Car?
On the other hand, if you like long term relationships with a higher sense of ownership and commitment, then buying could be what's right for you. Car-buying is typically best for people who won't mind driving the same car for over five years or even until it is no longer fit for the street.
Buy vs Lease: Which Is Right for You?
Knowing the pros, cons, and overall benefits of buying vs leasing a vehicle is imperative. 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 car financing type for you.
When weighing the value of vehicle financing, new vehicle ownership certainly comes along with many well-known advantages, most associated with complete ownership of the car, truck or SUV. You may not realize, however, there are also some great benefits of leasing, as well. It's imperative to consider all financial aspects including down payment, monthly payments, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough checkup of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car or truck.
Vehicle lease payments are often less expensive when compared to auto loan and car financing payments as the normal lease deal is pretty much renting with the option to buy out near the final payment of your lease term. Keep in mind when leasing that you will need a healthy credit score, and will be required to carry collision and comprehensive insurance, though the same can be said for the best rate auto loans. Although it may increase your monthly payments, it is also best to choose a model with the features you want or need, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leases often include regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of leasing vs ownership. No matter which make and model you buy, mechanic bills are an unpredictable cost that can quickly add up. And for those of us who aren't certified mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.
Peace of Mind
In general, a new vehicle lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning outright ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.