Buying vs Leasing

Confused about whether to buy or lease your next vehicle?

Is it better to lease or buy a new car?  Ask most people and they'll probably tell you that buying is the way to go. And from a financial perspective, it's true, provided you're willing to make higher monthly payments, pay off the loan in full, and keep the car for a few years. Leasing on the other hand, can be a less expensive option on a month-to-month basis. It's also good if you're someone who likes to drive a new car every three years or so.

Deciding between leasing and buying means balancing financial and lifestyle choices. For example, if you need an upscale car for business, perhaps to entertain clients, leasing allows you to have a nicer car for less money. However, if you're someone who tends to stick with the same car for years, the best choice would be to buy a new or used car and keep it for as long as it is reliable. You might could enjoy a few years without a car payment, which is great news for your wallet.

Since everyone's situation is different, here are the advantages for both leasing and buying your next vehicle. Keep in mind that there isn't always a perfect answer to the question of whether to lease vs buy.

Leasing Advantages:

• You have lower monthly payments with a low - or no - down payment.

• You can typically drive a better car for less money.

• You have lower repair costs because you are under the vehicle's included factory warranty.

• You can more easily transition to a new car every two or three years.

• You don't have trade-in hassles at the end of the lease.

• You pay less sales tax.

Buying Advantages:

• You can modify your car as you please.

• You can save money over the long term if you buy a car.

• You can drive as much as you like. There's no excess mileage penalty.

• You have more flexibility since you can sell the car whenever you want.

• You can use the car as a trade-in on the next car you buy.

In a nutshell, leasing makes it easier to get more car for less money. This is because you only pay for the use of the car for two or three years, instead of paying for the vehicle itself. Buying, on the other hand, frees you from the restrictions involved in leasing, such as mileage caps. The car is yours to do with as you wish. Ultimately, it's up to you to determine your needs and decide which choice best suits your lifestyle.