Why Lease a New Car?
If you want to drive newer, safer, more reliable cars, but prefer not commit to a considerable down payment every 3-4 years, and also do not drive an enormous amount of miles yearly, then a new car lease should be best for you. Leasing is better for those who prefer to avoid the annoyance of selling and buying each time they want to upgrade to a new car, truck, or SUV.
Why Buy a New Car?
Contrarily, if you like long term automotive relationships with a greater sense of commitment and ownership, then buying should be what's ideal for you. Car-buying is typically best for drivers who do not mind driving the same vehicle for over five years or even until it's no longer suitable for the freeway.
Buying vs Leasing: Which Is Right for You?
Being aware of the pros, cons, and overall benefits of leasing vs buying a car or truck is important. Be sure to consider potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new car or truck financing type for you.
When considering vehicle financing, new car, truck, or SUV ownership absolutely comes with many advantages, most associated with outright ownership of the car. You may not realize, but, there are also a few great upsides of leasing, as well. It's important to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise observation of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car, truck, or SUV.
Vehicle lease payments are often less expensive when compared to auto loan and car financing payments as the standard lease structure is basically renting with the option to purchase near the end of your lease term. Consider when leasing that you'll need a healthy credit score, and will be required to carry comprehensive and collision insurance, though the same can be said for the lower rate auto loans. Although it might likely add to your monthly payments, it is also smart to choose 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 remember this when calculating monthly costs of ownership vs leasing. Regardless of which make and model you choose, mechanic bills are an unknown cost that can rapidly add up. And for those of us who are not certified mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.
Maintenance & Repair
Generally speaking, a new vehicle lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning full 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 the best investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.