Buy for $16 000
Many people forget that there is a middle ground between buying a car and renting one. Leasing has long since been the underdog of these two avenues to obtaining a car. Curiously, it’s one of the single best ways to drive a very nice car for a reasonable amount of cash. There are many benefits of leasing that outweigh the few cons when pitted against the option of buying.
1. When compared to buying a car you’re going to get a much cheaper monthly payment and still be driving the same car.
2. The ability to switch cars often: As they say, variety is the spice of life and leasing gives you the car version of that saying. Every few years you can get a brand new car to lease and benefit from its use without tying yourself into a long-term agreement.
3. Possible tax perks: Some of the fees of your leased car, and its depreciation, will give you access to some great tax breaks. Few people know this before leasing a car, so investigate it. It’s one of the single best reasons to lease.
Despite the great things about leasing, there are a few advantages to buying as well.
1. Unlimited mileage: When you lease a car, you’ll be given a set number of annual miles to drive it per year. If you go over that mileage, you’re going to pay hefty fees for every mile over. By buying a car, you get unlimited miles with no worries about fees.
2. Stability: Switching cars every few years isn’t something some folks would want to bother with. When you buy, it’s yours for a long time as long as you make your monthly payments.
3. You can sell a new car after its paid off: This perk is obvious. You won’t be able to sell your leased car once the lease is up.
If you’re on a strict budget and don’t foresee that changing for a few years, leasing is inevitably your best option. You’ll be able to drive a super nice car for low monthly payments and then have the option to buy a car long-term when your financial situation improves. If you love variety in your cars but just can’t afford to buy a new one every few years, no worries. Leasing is the way to remedy that. You’ll drive away in what amounts to a new car every couple of years until you finally commit to buying. Eventually most people will choose to buy a car, but the fact is that until you’re able to afford a car you really love, it just makes more sense to lease.
The best news about leasing: You save on repairs as well. If you’re on a used car budget, chances are you can’t afford to buy a newer car. This means you’ll be paying out of pocket for repairs on a car that isn’t covered by a warranty. With a leased car, the car is usually new enough to be covered by manufacturer’s or dealership warranties. You’re going to save a ton of money on repairs if you lease a car instead of buy one. As always, it comes down to money. If you want a low down payment, or even no down payment, you should go with leasing.