Comparing a Lease to Outright Purchasing of a New Car

If you are getting ready to go out and pick up your new car, there are a few things you will want to consider as you get ready to pay for it. Many people look to only buy a car because they feel that is their sole option. This is not true. More and more people today are enjoying the benefits of a lease because it works for them. It all depends on your lifestyle and what you are hoping to get out of the car. There are definite advantages to both types of car purchases, so you will want to carefully consider the following information before making a firm decision.

Decide How Much You Will Drive the Car

This is a very important factor to take into account. Most people do not give any consideration to how much they a drive a car that they buy. They just get behind the wheel and go where they want to go, when they want to go. This can lease to a false sense of security, however, because the more you drive your car, the more wear and tear that it experiences. This is why a lease limits the number of miles that you can drive for the term of the contract. While this does mean that you cannot just drive across the country on a whim, it also means that you keep the car in like new condition that much longer. Keep in mind that you do drive more than allotted number of miles on a lease, you will pay a penalty as set forth in the contract.

Remember to Take Depreciation Into Account

Most people to not realize just how much a car goes down in value the moment that they drive it off a lot. If you are looking at a high end model, this could amount to thousands of dollars before you even put 20 miles on the odometer. When you buy a car, you bear the full weight of this hidden expense. When you go to sell the car, that will be taken into account by anyone who considers purchasing the vehicle. If you decide to lease a new vehicle, however, depreciation becomes the concern of the dealership itself. You will just pay your agreed upon monthly payments and then turn the car back over when it is all said and done. There will be no other expenses that you will need to account for in that area.

Consider Your Monthly Payments

When you set out to shop for a new car, you will likely have a set budget in mind. If you can buy a car in cash, then you will be done with the process. The title will be issued in your name and you will be on your way. The vast majority of new car buyers today, however, will finance their vehicle. This means that you will need a down payment, or to trade in an existing car. Beyond that, the monthly payment is higher than with a lease, so you might find that the car you really want sits just outside the comfortable range of your budget. With a lease, the monthly payments are typically much lower. This means that you can either bank the savings, or move up a few categories and get the car of your dreams will full options. The choice is up to you.

Car Ownership

If ownership is what is most important to you, buying the vehicle might be the option best suited to your situation. You will be able to do anything you wish to the vehicle as soon as you leave the dealership. With a lease, the car will never be yours unless you decide to pay the dealership the remaining value of the vehicle in cash at the end of the lease. You cannot just make major modifications to the car. At the same time, you will get a new car at the end of every lease, and this is quite appealing to many. IN the long run, the decision to buy or lease is up to the buyer. Leasing, however, does have many good advantages worth considering.