That is the question that may car shoppers are asking today. There is a lot of information swirling out there in the media about the various advantages and disadvantages of both, but we are here to set the record straight. This is an important decision, as it impacts your budget and your ability to get into the vehicle that you want as well. With that in mind, consider the following information that should prove helpful to you as you begin your search and make a decision that will be beneficial to you and your family.
Consider Your Mileage
This might sound like a strange concept, but when it comes down to choosing between a purchase and a lease, it is nonetheless necessary. When you buy a car, you are free to drive it as much as you want. You can rack up 100,000 miles in the first year if you so please. With a lease, however, you will be limited in those miles. There will be a certain amount allotted to you over the term of your contract, and you do not want to go over that. If you do, you will pay a set fee per mile that you exceed your allowance. So, in this case, the decision to buy or lease your next new car may very well come down to how many miles you intend on putting on it.
Consider Your Credit
Payments with a lease are generally much lower on a monthly basis with a lease, but only if you have some pretty good credit. If you are considered to be a credit risk, the payments offered to you might be less than desireable. At the same time, credit influences how much you pay in interest when you go to buy a new vehicle as well. The lower your credit score, the higher your rate will likely be. This will impact your monthly payments. In the end, if you qualify for a lease, you will most likely find that the payments will be lower overall than if you set out to buy the car outright.
Repairs Are Also An Issue
You do not want to make the mistake of thinking that your expenses are finished once you buy a new car. In fact, the upkeep required to keep a car running properly can take quite a chunk out of your personal budget. You might be thinking that your car’s warranty will pay for any major repairs the crop up, but that is only true for the first few years or so many miles. After that point, you will be on your own. A car that is leased, however, will remain new for the duration of the contract. The chances of a major repair even being necessary is rath small. In the event that something does go wrong, however, you will be covered under warranty anyway. This is another way that leasing a car may very well save you money over the long run.
Remember To Take Depreciation Into Account
Another factor to consider is depreciation. WHen you buy a new car, the value will go down considerably almost immediately. This can be quite disconcerting when you go to sell your car for any reason. Unless your plan is to hold onto the car for many years, this could mean that you wind up losing thousands of dollar in the process. A lease owner will not have to worry about depreciation, as the dealership will be responsible for that. You just need to make your monthly payments and you will be all set to turn in the vehicle at the end of the lease.
Look At Your Budget
Many people go to buy a new car and grow disconcerted that they are just short of the money required to get the car that they really want with the options that they truly desire. The numbers just do not work out for them. With a lease, however, the monthly payments are often so much lower in comparison to a traditional purchase that you might be able to move up a few car categories and still remain within your budget. This is something to consider as well.