New Car: Should You Buy or Lease?
Let’s set the scene: Your car is on the verge of breaking down and you have finally made the decision that you can’t put off buying a new car any longer — the only question left now is whether you want to buy or lease your next vehicle.
While there are benefits and drawbacks for both options, the best route for you really depends on your personal needs and wants. Here are a few things to think about before you make the decision.
What’s your budget?
Everyone’s financial circumstances are different, but typically the biggest deciding factor for whether to lease or purchase a car comes down to your monthly budget for vehicle payments. For instance, if you really want that shiny sports car, but only have the budget for an average car in the next lot over, leasing may be a better option for you.
Leasing allows you to get a nicer car for a lower monthly cost; if you aren’t willing to settle for a less expensive purchase, leasing may be the way to go.
How many miles do you drive?
On the other hand, if you have a long commute to work each day or are inclined to take spur-of-the-moment trips, leasing probably isn’t for you. This is because most lease terms usually have a limit of roughly 10,000 to 12,000 miles per year. If you go over that limit, you’ll end up paying a considerable fee.
You may be able to get a few thousand miles added onto that number through negotiation, but I wouldn’t count on it!
How long do you keep your vehicles?
Leasing is a perfect option for people who want a new vehicle every three or four years. This is because leasing allows you to change cars whenever your lease is up, without ever increasing your payment. If you enjoy having a certain car for as long as possible however, then purchasing is a much better option.
If you plan on keeping your car for a long time, you will eventually pay it off and won’t have any payments at all!
Do you haul a lot of stuff?
If you are constantly toting around tools, machinery, or other large items, leasing is probably not a good idea. For every ding or scratch that your vehicle gets, you will be required to pay a hefty repair charge when your lease expires. On the other hand, if you’ve purchased a vehicle, you can damage it as much as you’d like without any repercussions (except maybe spousal disapproval.)
Your answers to the above questions should help you determine whether purchasing or leasing your next vehicle is the best option for you. No matter which option you choose though, be sure to negotiate prices with the dealer. Never tell them what your budget is unless you want to end up with a higher monthly payment.
The best way to get the best deal is to use your bargaining skills!
Written by Marc LaFerriere at Dents Unlimited & Toalson Glass. Marc and his expert staff offer the best service and windshield replacement Columbia MO has to offer.
