After you go to a dealership, go on that test drive, and finally figure out which car you want to bring home, it’s time to decide on whether you want to lease or buy the vehicle. There is no right or wrong choice here, however, there is a better choice to suit your needs, and always, ALWAYS ask for discounts and extra trade in values. It never hurts to ask!
1) Consider leasing if you:
- want to put down less money.
- desire lower monthly payments.
- don’t want to worry about depreciation.
- don’t add significant mileage by traveling short distances.
- want to change vehicles often.
- enjoy experimenting with different vehicles (there’s nothing wrong with getting a feel for different vehicle types).
2) Watch out for:
- dealership’s lease agreements.
- you will probably pay higher insurance rates.
- they will limit your mileage.
- expect to go back to their dealership for routine maintenance.
- paying out penalties if you damage the vehicle.
- early termination fees.
- you’ll never own the vehicle.
1) Consider buying if you:
- want to keep and own the vehicle.
- don’t mind higher monthly payments.
- want to spice up the vehicle by adding different features.
- want to drive it as far as you want.
- can pay off the vehicle in full.
2) Watch out for:
- dealership warranties and terms (some dealership’s warranties will be voided if you take your vehicle to a different repair shop to get fixed or even painted).
- down payments and taxes on the full value of the vehicle, registration, and other costs.
- higher insurance costs.
- loan company’s interest rates.
Let’s Hear From You!
Are you thinking about leasing or buying your next vehicle? Which option do you think works best for you, and why? Have you recently purchased or leased a vehicle? Do you regret your decision? What advice would you give to someone that is looking to lease or buy their next vehicle?
My wife and I recently purchased a Ford Escape. Looking back at it now, we believe that it was the best option, because we drove it half way across America for our vacation, and we plan on doing it again. Maybe we will go on a road trip on a yearly basis. In addition, we are planning to keep our new Ford Escape for a long time. We changed loan companies to get a lower interest rate, so the monthly payments aren’t as high, plus it feels good owning something. Hopefully, our Ford Escape will last a long time.