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Should You Lease or Buy Your Car?

Are you better off leasing or buying a new car? If you ask most people, they will probably tell you that purchasing your car is the way to go. From a financial perspective, this is true. Provided you are comfortable paying higher monthly repayments to pay off a loan and keep your car for the foreseeable future.

On the other hand, leasing can provide a less expensive way to enjoy a top-of-the-range car. This is also a great option if you are the kind of person who likes to drive a new car every three years or so.

Here, we’ll take a look at whether you should consider looking into cheap car lease deals.

Leasing a Car

When it comes to either leasing or purchasing a car, there isn’t a definitive answer. Both options come with their own set of pros and cons. The decision to either lease or buy your new car tends to come down to your lifestyle and your personal preferences on how you pay for your purchases.

For example, if you require an upscale car, leasing enables you to enjoy a newer or better model for less money. In some cases, it can also provide you with a handy tax write-off. However, if you are the kind of person who usually sticks with the same car for a number of years, you will probably be better off purchasing a new or used car and keeping it for as long as it remains reliable. With this option, you would enjoy a number of years without a car payment.

Ultimately, it’s easy to say good things about both leasing and buying a car. The choice between the two options can often come down to priorities and personal tastes.

As everyone’s situation is different, we thought it would be useful to put together a list of the main pros and cons of leasing a car. Some of these points will relate to financial motivators, whilst others will relate to your needs and current lifestyle.

Leasing Pros

  • You will enjoy lower monthly payments

  • Minimal or no down payment required

  • Option to drive a better car for less money

  • Lower repair costs to consider as you are under the manufacturer’s warranty

  • The option to transition to a new car after your current lease runs out

  • No need to worry about any trade-in hassles at the end of your lease

  • Less sales tax to worry about

Leasing Cons

  • You won’t own your new vehicle when your lease finishes

  • You are typically limited to a specific mileage per year

  • Some of the terminology used in lease contracts can be difficult to understand

  • In the long-run, you’ll pay more for a leased car

  • You may be subject to excessive charges for wear-and-tear

  • It can often be costly to terminate your lease early

Final Thoughts

As you can see, when it comes to leasing a car, this option makes it easier to get more car for your money. Ultimately, it’s up to you to weigh up the different pros and cons and determine which choice best suits your current lifestyle.

Images: Pixabay.com

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