Why Lease a New Car?
If you want to drive newer, safer, more reliable cars, not pay a large down payment every 3-4 years, and also do not travel an enormous amount annually, then a new car lease may be right for you. Leasing is designed for people who prefer to avoid the hassle of buying and selling every time they want to drive a new car.
Why Should You Buy a New Car?
Contrarily, if you want long term relationships with a larger sense of commitment and ownership, then buying might be what's right for you. Car-buying is typically best for people who do not mind driving the same car or truck for over five years or even until it's no longer suitable for the road.
Buy vs Lease: Which Is Right for You?
Knowing the pros, cons, and overall benefits of buying vs leasing a car or truck is critical. Be sure to consider monthly payments, vehicle ownership, repair costs, and potential savings when considering 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 entire ownership of the vehicle. You may not realize, however, there are also a few nice 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 ideal choice between leasing and buying a new car, truck, or SUV.
Car or truck lease payments are often less expensive when compared to car financing and loan payments as the standard lease deal is basically renting with the option to buy out at the final payment of your lease term. Consider when leasing that you'll need a higher credit score, and will be asked to carry comprehensive and collision insurance, though the same can be said for the better rate auto loans. Although it may increase your monthly payments, it's also better to select a model with the features you need or want, 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 projecting monthly costs of leasing vs ownership. No matter which make and model you buy, mechanic bills are an unknown cost that can rapidly add up. And for those of us who are not certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing can be the best option for peace of mind.
Repair & Maintenance
Generally speaking, a new car 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, truck, or SUV 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.