Why Should You Lease a New Car?
If you like to drive newer, safer, more reliable vehicles, prefer not to pay a big down payment every few years, and also don't drive an enormous amount yearly, then a new car lease might be better for you. Leasing is designed for those who prefer to avert the hassle of selling and buying each time they want to drive a new vehicle.
Why Buy a New Car?
Contrarily, if you want long term automotive relationships with a larger sense of ownership and commitment, then buying could be what's best for you. Car-buying is typically best for drivers who don't mind driving the same car, truck, or SUV for over five years or even until it is no longer suited for the road.
Buy vs Lease: Which One Is Right for You?
Being aware of the pros, cons, and overall benefits of leasing vs buying a car, truck, or SUV is important. Be sure to acknowledge factors such as vehicle ownership, monthly payments, repair costs, and potential savings when considering the best new car or truck financing type for you.
When weighing the value of vehicle financing, new car or truck ownership surely comes along with many well-known advantages, most associated with absolute ownership of the car or truck. You may not be aware, however, there are also some nice upsides of leasing, as well. It's imperative to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise examination 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.
Vehicle lease payments are oftentimes less expensive in comparison to car financing and loan payments as the standard lease format is basically renting with the option to purchase near the final payment of your lease term. Keep in mind when leasing that you will need a decent credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the lower rate auto loans. Although it might likely increase your monthly payments, it's also smart to get 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 remember this when calculating monthly costs of ownership vs leasing. Regardless of what make and model you buy, mechanic bills are an unknown cost that can rapidly add up. And for those who are not certified mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.
Maintenance & Repair
In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning absolute 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 terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.