Why Lease a New Car?
If you like to drive newer, safer, more reliable vehicles, but prefer not to commit to a sizable down payment every few years, and also don't travel an exorbitant amount of miles annually, then a new car lease might be best for you. Leasing is designed for people who would prefer to avert the annoyance of selling and buying each time they want to drive a new vehicle.
Why Buy a New Car?
Contrarily, if you prefer long term relationships with a greater sense of commitment and ownership, then buying may be what's ideal for you. Car-buying is typically best for people who do not mind driving the same car for more than five years or even until it is no longer fit for the freeway.
Leasing vs Buying: Which Is Right for You?
Knowing the pros, cons, and overall benefits of leasing vs buying a vehicle is imperative. Be sure to look at potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new vehicle financing type for you.
When it comes to vehicle financing, new car, truck, or SUV ownership surely comes along with many well-known advantages, most associated with entire ownership of the car or truck. You may not be aware, but, there are also a few great benefits of leasing, as well. It's important 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 careful diagnosis of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car.
Vehicle lease payments are oftentimes less expensive than car financing and loan payments as the normal lease contract is more-or-less renting with the option to buy out at the end of your lease term. Remember when leasing that you'll need a good credit score, and will be required to carry comprehensive and collision insurance, though the same can be said for the better rate auto loans. Though it may increase monthly payments, it's also better 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 keep this in mind when calculating monthly costs of ownership vs leasing. Regardless of which make and model you buy, mechanic bills are an uncertain cost that can rapidly add up. And for those who aren't certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.
Repair & Service
Generally speaking, a new car or truck lease saves money in the short term with lower monthly payments, while buying gets 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 value 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 in a shorter term and also avoid excessive wear and mileage.