Why Lease a New Car?
If you want to drive newer, safer, more reliable vehicles, but prefer not to commit to a sizable down payment every 3-4 years, and also do not travel an enormous amount of miles every year, then a new car lease should be the right choice for you. Leasing is intended for people who prefer to bypass the hassle of selling and buying each time they want to get into a new car or truck.
Why Should You Buy a New Car?
Conversely, if you prefer long term relationships with a greater sense of commitment and ownership, then buying may be what's best for you. Car-buying is typically best for people who will not mind driving the same car, truck, or SUV for more than five years or even until it's no longer suited for the freeway.
Buying vs Leasing: Which One Is Right for You?
Being aware of the pros, cons, and overall benefits of leasing vs buying a car is critical. Be sure to look at repair costs, vehicle ownership, monthly payments, and potential savings when calculating the best new car, truck or SUV financing type for you.
When weighing the value of vehicle financing, new vehicle ownership absolutely comes with many well-known advantages, most associated with outright ownership of the car or truck. You may not realize, however, there are also a few great upsides of leasing, as well. It's imperative to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A meticulous examination 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, truck, or SUV.
Car or truck lease payments are oftentimes less expensive than auto loan and car financing payments as the normal lease structure is pretty much renting with the option to purchase near the final payment of your lease term. Keep in mind when leasing that you'll need a healthy credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the lower rate auto loans. Though it may likely increase your monthly payments, it's 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's 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 unknown cost that can quickly add up. And for those of us who are not certified auto 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 car, truck, or SUV lease saves money in the short term with more affordable 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 the best investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.