Buy or Lease
Decided to purchase a vehicle but not sure whether buying or leasing is the best option? The choice between the two can definitely be a difficult one. Each has differing advantages and disadvantages depending on your financial needs and driving habits. Read below and see which type of buyer you may be.
More likely to buy –
If you drive a lot – When you lease a car, you are typically capped at 15,000 miles a year. Additional mileage can cost you up to 35 cents per mile depending on make and that can really add up.
If you like to personalize your car – this investment can be lost, or even cost you, on a leased car.
If you like the idea of ownership – you are less likely to be happy with the lease option as you don’t actually own the vehicle or have a title for it.
If you like paying your vehicle off – If you like the feeling of accomplishment that paying off a large purchase brings. When you lease a car, the payment ends only when you return the car.
If you don’t mind doing your own repairs – if you don’t mind doing your own car repairs, you probably don’t mind driving a car after the warranty expires either.
More likely to lease –
If you don’t drive a lot – Lease arrangements usually involve a 15,000 miles-per-year cap, and may go all the way down to a 10,000 mile cap, and charge for extra miles. If you drive very little, you may be a good candidate for a lease.
If you like that new car smell – When you negotiate a 24 or 36-month lease, you can be sure you’ll always be driving a new vehicle.
If you like to stay under warranty – Although you need to maintain and repair your leased vehicle just as you would an owned vehicle, because you typically lease for 2 to 3 years, the car is normally under warranty.
If you like lower monthly payments – If you don’t mind not owning the car, you are free to enjoy the benefits of leasing like low monthly payments and a low down payment.
If you’d like a more expensive vehicle – leasing provides a way to drive a nicer vehicle than might otherwise be within your budget.