How Do You Decide Whether To Lease Or Buy A Car?
Leasing can put you into a more expensive or newer car than you might otherwise buy. All things being equal a long term finance will produce a similar monthly payment as a short term lease. If you budget a monthly payment consider what you pay and for how long. It may make sense to be making a payment on a newer car each month than the same payment on a vehicle that’s wearing out. • Consider your trade cycle history. Chances are you’ll keep the next car about the same length of time as before. If it’s long term, 5 or more years, consider buying. You’ll generally pay less per year that way. If, on the other hand, you like to drive the latest models, leasing may be cheaper and simpler than buying and trading every 2-3 years. If you are going to use the vehicle as a work truck, for example and are likely to damage the vehicle, consider a commercial lease. Your accountant can provide some tax advantage options. • Estimate what you can spend on a down payment if buying, and how much you can
