How To Decide If Leasing Or Buying a Vehicle Is Right For You

It’s that time of the year again! Everywhere you look there are car dealerships that are offering their spectacular summertime sales events. Perhaps your car is on its last legs and you are looking to get it replaced, or perhaps you are just looking for a new ride because you just want something newer. And while this is the perfect time to get your new hot ride, it would be wise to do a little more research before you head on down to your local dealership.

Buying a car is much different than buying a pair of shoes or a blouse — although sometimes I wish it was. Getting a new vehicle a commitment and a financial obligation that you’ll be responsible for paying for the next three to five years. Much like dating; before you officially become committed and settle down for the long haul, it’s smart to date around, meet different types of people, and explore your options, right?

Knowing your options when it comes to buying or leasing a car, and understanding the benefits and setbacks of each choice, can give your leverage, save you money in the long run, and help you avoid unnecessary financial stress.

Below are some advantages and disadvantages for leasing and buying a vehicle. I’ve also included some questions you can ask to determine which option is more beneficial for you. Don’t let the car salesman make the choice for you. They don’t know your financial goals, your current financial situation or what is in your best interest. And frankly, they may not even care. Don’t assume that having a lower monthly payment on a leased car is in your best interest. Get clear on what your plans are for your next vehicle before you make that decision.

What is leasing a vehicle?

Leasing a vehicle allows you to drive a new car without taking out a loan or paying a large sum of cash up front for it. You are not the legal owner of the vehicle. Simply put, you are renting that vehicle and are only making monthly payments for the term of the lease, which typically expires after 36 months. Leasing a car is similar to renting a home. Each lease can vary in their terms and conditions.

Leasing Pros and Cons:

Purchasing Pros and Cons:

Questions to consider:

1) How long do I plan on keeping this vehicle?

2)How many miles will I be putting on annually?

3)How much money do I have saved for a down payment?

4)Can I afford the monthly payment if an emergency arises?

5)Do I have money saved for maintenance fees and repairs?

6)How much do I value the ownership of a vehicle?

Let me know if you found this resource helpful in the comments below! And let’s stay connected on social media, where I mostly hang out with other amazing individuals like you!

Xoxo

Kathy H.

What is leasing a vehicle?

Leasing Pros and Cons:

Purchasing Pros and Cons:

Questions to consider:

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