Struggling with Whether to Buy or Lease Your Next Car? Save Money and Headache with These Pro Tips!
Are you in a situation in which you need a car–and quickly–but you know you don’t have the money to purchase a car? Does thinking about car repairs stress you out? Do you hate having a car payment every month?
If any of these scenarios resonate with you, then consider leasing your next car. Read on to get our insider tips for deciding whether to buy or lease:
Tip #1: Consider How Much Money You Can Spend On a Car
While there are many benefits to buying a car, you will need cash and/or collateral to finance one before you drive it off the lot. Most dealers ask that you give them a down payment to finance a new car — which can result in hundreds to thousands of dollars. If you don’t have a lot of cash saved, this can get you into bind. You may need to sell some assets to reach the down payment. You may have to turn your car over to the dealer — and there’s no guarantee you’ll get top dollar.
If you don’t have enough cash saved for a down payment, then leasing a car can be a viable option for you. While leases do require some upfront cash — such as the first month’s lease payment — they are easier on a driver with a tight budget.
Another reason leases can be money-saving for you: Your payments often are lower than a traditional car payment. Just keep the sales price of the car in mind, as this helps to determine your monthly payment.
Tip #2: Evaluate How Many Miles You Drive Per Year
When you own a car, you can drive as many miles as you want. The car is your property. But when you are leasing a car, you are borrowing the car from the dealership, and as a result, you can’t drive as much as you want. Your lease will outline how many miles you can put on the car — and you need to make sure you don’t go over or you’ll be hit with a fee when you turn the car in at the end of the lease.
You should be fine, however, if just keep an eye on your miles. If you travel tens of thousands of miles a year, then leasing a car may not be for you.
Tip #3: Decide How Much of a Role You Want in Repairs
Finally, it’s important to remember that when you own a car, you have to pay to maintain it. If your car engine breaks down, you have to replace it or get it repaired. When this same situation occurs with the leased car, the dealership takes care of the repairs. For that convenience alone, leasing a car is a great option for drivers who want the burden to be on the dealership.
It’s Time for a New Car
There comes a point when getting a new car is a necessary option, but you don’t want to feel rushed into a decision. This is your money, after all! In addition, instead of buying a used car—along with all of the stressors associated with maintaining it—consider leasing a new car for a lower cost. Keep this guide in mind as you weigh the pros and cons and make your choice.