Should I Buy or Lease My Next Car?

When your old car is on it’s last miles, it’s likely that you’ll start looking around for a new set of wheels. But before you head to the dealership and fall in love with the first new shiny car you see, it is important that you determine whether or not you should be buying or leasing your next vehicle. Each route comes with it’s own benefits and considerations that should be kept in mind during your purchase.

In order to help you make the right decision, here are some things to keep in mind when determining if you should buy or lease your next car.

What’s Your Budget?

One of the first considerations that you’ll need to make before looking at a new car is your budget. After all, the last thing you want is to be poor each month because you are struggling to make your car payment. If you decide to lease, understand how the monthly payment (including insurance, gas, maintenance, etc.) is within budget. In addition, keep in mind that leases come with strict guidelines that limit your ability to pay it off. If you pay it early, that may come with additional fees, which means more money out of your wallet.

You can easily get rid of those monthly payments by purchasing your vehicle outright. However, this requires that you have all of your money readily available, which may not be an option. Even if it is, most people will want to think twice about spending cash on something that depreciates the moment you drive it off the lot.

Your readily available cash flow or your necessity to take out a loan could be one of your biggest factors when determining if you should buy or lease a car.

How Often Do You Drive?

When leasing a car, there will be restrictions as to how much you can drive each year. For those that are on the road often, this may not be logical. Instead, they may need to purchase a car that does not limit the amount of miles you put on it. The average of 10,000-15,000 miles per year may be enough for some, but be prepared to pay an additional fee if it’s not enough for you.

Can You Keep Up With Required Maintenance?

buying-a-new-carLeases require that you always get maintenance, which is great because it keeps your ride on the road. But can you get there to get your car seen to? If not, you may feel better with purchasing a car that you can maintain on your own at your own convenience.

How Long Do You Need A Vehicle?

A lease can be a great option for those that need a quick fix for a vehicle. For example, if you plan on only being somewhere for a year before moving, then leasing a car for that time may be an ideal consideration. Then again, if you are setting up a foundation for years to come, then having a monthly car payment may be something you’re willing to take on.

No matter what your situation is, you can get a new vehicle by either leasing or purchasing it. Keep these points in mind when determining which route is best for you.

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