Buy Vs. Lease

THE QUESTION: LEASE OR BUY MY NEW CAR?

If you're contemplating on whether or not you should lease or finance your next vehicle, this article should give you some insight on which of the two options better suites you.

Leasing a New Car:

In order to lease a car, there are a few factors to consider. For example, your driving habits. Typically, when leasing a vehicle you should expect a range from 10,000 to 15,000 miles a year. In other words, if you do long distance driving on a regular basis you might want to rethink your decision to lease. However, if your driving is generally local then a benefit to leasing is that you can drive off the lot with your new car today with no down payment in most cases. Another benefit to leasing is being able to drive in a fancy new car every few years with the latest technology and safety features. Furthermore, once the lease is over you simply turn in the car and you are free to go or choose a new one!

Financing a New Car:

The main benefit to financing an auto is that there are no restriction on mileage, meaning you may drive wherever, whenever. So if you're the type that likes to take family road trips then financing your next car is most likely your best alternative. In addition, a significant point to financing is that you are building equity on a car that will soon be yours. This means, once you pay off your loan you can remove a monthly payment from your budget unlike, and individual who rather lease. Likewise, having to worry about wear and tear isn't really an issue when financing since the car is yours. When leasing however, you are held responsible and would have to pay extra for damages that are considered excessive wear and tear.

Here is a chart-from consumerreports.org - that compare the two choices:



 

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