This is a question that many people grapple with when they are in the market for a new vehicle. There are numerous factors to take into consideration, such as your driving habits and what you hope to get out of the car. For many, price is a serious consideration, and this is why a lease is appealing on so many different levels. With the monthly payments on a lease typically being much lower with a lease, it is possible to finally get more car for less money. If you do not mind the mileage limitations and the limited ability to modify the car itself, leasing just might be the option you have been looking for. To help you decide, consider the following pros and cons relating to both a lease and purchase of a new car or truck.
How Important is Ownership?
If ownership is what is most important to you, it is true that a lease will not fulfill that desire. With a lease, there will be certain limitations in terms of what you are able to modify with the car and how many miles you can drive each year. When you purchase a car, it will be yours from the moment that you leave the lot. You can drive it as much as want, change the color, and even convert it into a racing car if that is what floats your boat. Keep in mind that the depreciation also drives off with you when you purchase a new car, which is a definite advantage that you get when you lease a car.
New Means New
If you are the type of car owner that gets bored with a car after a few years, leasing is the way to go. With a lease, you will always have the opportunity to get a new car. With typical lease terms being in the three-year range, you can hand a car back in just when that new car smell has worn off and then get a new car for another three years. This is just not a financially viable option when you purchase a car outright. Many financed deals are for five years or longer, meaning that you will still owe the bank for your car long after a lease term would have expired. To add insult to injury, lease payments are typically quite a bit lower than you will get when you purchase a car.
Throw Away the Monkey Wrench
One of the unfortunate realities of car ownership is the need for repairs. After you have driven a car for a few years, even the best maintained of vehicles will begin to show signs of wear and tear. This brings with the need for repairs, and that will likely mean more money coming out of your pocket. Even if the car is covered under a warranty, you will find that certain items just are not covered. With a lease, however, the car remains so new through the term that repairs are unlikely to ever even be an issue. If they do become necessary, a full manufacturer’s warranty is in effect and will take care of any major problem for you.
How Much Car Can You Afford?
This is a question that most car shoppers must answer before heading over to the dealership. You cannot get a car that is outside of your budget, yet this is exactly where it seems most vehicles of your dreams lie. If you cannot make the payments work within your budget, you are forced to settle for a cheaper car that you are really not all that satisfied with. A lease, however, becomes an option worth considering in this case. You can generally move up a few car classes when leasing due to the lower overall monthly payments when compared to buying a car outright.
The above information is meant to provide a brief synopsis of the advantages and disadvantages of car leasing vs. car buying. The choice is ultimately up to each individual person, and you should weight your situation carefully before making your decision and signing on the dotted line for any purchase or lease.