Should I Buy or Lease My Next Vehicle?
As new cars, trucks, and SUV’s have increased in price, dealers implemented the idea of leasing their vehicles out. This gave customers who couldn’t afford to buy a new vehicle the chance to lease (or rent) one. Just like renting an apartment, leasing a vehicle as its advantages and disadvantages. Let’s take a look at those now: 1. Advantage: If you choose to lease, you can have a brand new car, truck, or SUV every couple years or so. All you have to do, is to turn the vehicle in at the end of the leasing period. As long as all of the terms of the agreement are met, the lease will expire. The dealership may offer you the opportunity to lease again. Or, if you choose not to, you can just walk away with no further strings attached. 2. Disadvantage: The terms of a vehicle lease agreement can be somewhat restraining. For example, there is always a mileage limit. You are allowed to drive the car, truck, or SUV a set number of miles every calendar year. If you exceed that amount, and people
With all of the low or no interest financing available on new vehicles and new depreciation incentives created as a result of the September 11th terrorist attacks, the already difficult decision of whether to buy or lease a new vehicle has become even more difficult. Knowing what to do before you get to the car dealership can ease the decision making process and alleviate any unpleasant surprises later. The following are the advantages and disadvantages of buying and leasing and questions you need to answer in order to make an informed decision.
Ah, that’s the $64,000 question!!! There are a few ways to answer that question and it shouldn’t be any surprise that the answers pretty much rest with you, your lifestyle and financial preferences, however, if you stay with me for a couple of minutes I can give you some “food for thought” that could have a bearing on your decision … Are ya with me?? Excellent!!! If you want to modify the vehicle in some way, if you rack up the miles, if you want to own the vehicle and /or if you want to keep your vehicle for several years … then …. finance. If you want to keep your monthly payment down (I’ll explain that in a second), if you don’t put too many kms on in a year, if you want to get into a new vehicle every 2-4 years and/or if you have a business income where you can claim monthly payments for a vehicle … then …. lease. Sounds pretty reasonable, right?? Ok, let’s go a little further … When you decide to finance a vehicle, what you are doing is paying on the full amount of the
Probably one of the more difficult decisions you will have to make as a manager is whether to buy or lease your auto. Knowing the advantages and disadvantages of buying vs. leasing a new vehicle before you get to the dealership can ease the decision-making process and may alleviate unpleasant surprises later. Nearly one-third of all new vehicles (and up to 75% of all new luxury cars) are leased rather than purchased. But the decision to lease or buy must ultimately be made on case by case basis, after taking into consideration each person’s facts and circumstances. Buying Advantages. • You own the car at the end of the loan term.. • Lower insurance premiums. • No mileage limitations. Disadvantages. • Higher upfront costs. • Higher monthly payments. • Buyer bears risk of future value decrease. Leasing Advantages. • Lower upfront costs • Lower monthly payments. • Lessor assumes risk of future value decrease. • Greater purchasing power • Potential additional income tax benefits. • Ease of
This is a question that you may have considered in your car buying experience. There is not definite answer one way or the other. The only adequate answer is that it depends on your situation. There are many pro’s and con’s to both buying and leasing a vehicle. Leasing is often a good choice for buyers who may want to get more car for the dollar. Owning is more expensive in the short run, but has its benefits too. Buying: • Ownership • Keep the car as long as you like • Custom Options/Upgrades Leasing: • Lower monthly payments • New vehicle every few years • Less down payment Leasing will end up costing you more in the long run where you won’t have much to show for it. Be sure to ask yourself all the right quesitons before you decide which option to do.
