New Car Leasing vs Buying
Why Should You Lease a New Car?
If you want to drive newer, safer, more reliable vehicles, but prefer not commit to a big down payment every 3-4 years, and also do not drive an excessive amount yearly, then a new car lease could be right for you. Leasing is ideal for people who would prefer to avoid the annoyance of selling and buying each time they want to drive a new car or truck.
Why Should You Buy a New Car?
On the other hand, if you want long term automotive relationships with a higher sense of ownership and commitment, then buying might be what's best for you. Car-buying is typically best for those who won't mind driving the same vehicle for over five years or even until it is no longer suitable for the highway.
Leasing vs Buying: Which Is Right for You?
Knowing the pros, cons, and overall benefits of leasing vs buying a car, truck, or SUV is imperative. Be sure to examine factors like vehicle ownership, monthly payments, repair costs, and potential savings when calculating the best new car or truck financing type for you.
When considering vehicle financing, new car, truck, or SUV ownership certainly comes with many well-known advantages, most associated with absolute ownership of the car, truck or SUV. You may not realize, but, there are also a few great upsides of leasing, as well. It's essential 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 meticulous inspection 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.
Car or truck lease payments are often times less expensive compared to car financing and loan payments as the typical lease structure is pretty much renting with the option to purchase at the final payment of your lease term. Just consider when leasing that you'll need a higher credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the better rate auto loans. Although it can likely add to monthly payments, it is also wise to select a model with the features you want or need, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leases often include regular vehicle maintenance & repair. It is important to remember this when projecting monthly costs of ownership vs leasing. Regardless of what make and model you choose, mechanic bills are an uncertain cost that can quickly 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.
Peace of Mind
Generally speaking, a new car lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning outright ownership of the value of the car or truck 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 the best investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.