It can be an exciting time when you are shopping for a new car. There are so many different makes and models to choose from today, each with some innovative options that really put the fun back into driving again. Beyond just choosing what new car you would like next, however, you are faced with the decision of how you will pay for it. Leasing has become an increasingly popular option, particularly for individuals who like to keep their vehicles shiny and new. Buying a car is always a possiblity that works for many people as well. How do you decide which of these two options is best for you? Consider the following questions related to each before making up your mind.
How Much Will You Drive This Car?
The fist thing to consider when deciding whether to buy or lease your next car is how much you will actually drive the vechile. You should be aware that a lease will limit how many miles you are permitted to drive the car each year. While you can increase your monthly payments just a bit to get more miles, the reality is that you will not be able to drive across the country several times a year and not expect to pay a penalty when you go to turn the car back in. When you buy a car in your own name, however, it is yours to drive as much or as little as you would like.
Does Depreciation Worry You?
An ugly part of buying a new car is related to the notion of depreciation. Once you buy a new car, the value goes down considerably in just the few moments after you sign the final papers. In some cases, it can be several years before you have made enough payments on the loan to be even with the actual value of the car. This worries many car buyers, because it limits their ability to sell the car in the event that they need, or even want, to. Leasing takes depreciation off the table because the dealership eats that amount. You simply pay the monthly payment that you agreed to for the term of the lease, and then you hand the car back over when you are done.
How Much Car Can You Afford?
When you go shopping for a new car, you may become saddened when the exact car that you want is just slightly out of your price range. This means that you must settle for buying a car that you are not 100 percent thrilled with. With a lease, however, the monthly payments for any given car are likely to be much lower than they would be if you had purchased it outright. This means that you can usually jump up a few categories to get the car that meets your budget. Alternatively, you can always just settle for the far lower monthly payments, enjoy a new car, and rest easy knowing you will get another shot in just a few years.
Do You Enjoy Selling Cars?
This might sound like a crazy question since you are actually considering how to buy a car. It is, nonetheless, something important to take into consideration. If you buy a car, you will most likely want to sell it eventually. If you have financed the vehicle, this becomes tricky until the loan is paid off. If you cannot get enough money out of the car, then you will have to come up with the difference out of your pocket just to be rid of it. Alternatively, you need to wait until the car is paid off, at which point it will not fetch the price that you would like. With a car lease, you will never need to worry about selling the car at the end of the contract. That will be a problem for the dealership to take care of.
As you can see, there are advantages and pitfalls to both buying and leasing a car. The key is to determine what works best for you. For many people, that is a lease. You will love the lower monthly payments and the new car that you get every few years.