Should you buy, or should you lease?
There's benefits to both ways you can get into a new vehicle - weigh your options, and figure out what works best for you.
- Leasing gets you in and out quicker for less money down and a lower cost per month. You only have to pay tax on the value of the car you actually used during the life of your lease, saving roughly half the sales tax you would if you had bought the vehicle.
- Most people don't want to be making car payments and repair payments at the same time. With a lease, your new car is under factory warranty coverage so you don't have to worry about budgeting for repairs.
- The perfect lease is between 24-48 months because it gets you out before repairs are no longer covered by warranty, and before the models change.
- According to LeaseGuide.com, 75% of all luxury vehicles are leased, due in part to the avoidance of major banks financing high-dollar vehicles. Leasing allows you to afford a nicer vehicle than financing makes possible.
- At the end of the lease cycle, you simply turn the vehicle in. The dealer will take a report of its condition, and as long as there is no damage, excessive wear and tear or mileage, it's out of your hands. A shorter lease term means more flexibility, you can also take advantage of it sooner. Longer finance terms can leave you in a deficit position until near the end of your term.
- The truth is, if you're making loan payments, the vehicle belongs to the bank until the last payment is made. If you often trade in your vehicle before it is paid off, leasing could save you money in the long run.
- The truth is, every lease can be tailored to suit your specific needs. Will your vehicle be subject to increased ware based on how or where it is used? We can adjust for that too.
- The truth is, a new vehicle starts depreciating as soon as you drive it off the lot. Leasing allows you to minimize your exposure to depreciation, yet still offers you an opportunity to buy it at the end of the lease if it offers good value.
- The truth is, leasing gets you in and out quicker for less money down and a lower cost per month. You only have to pay tax on the value of the car you actually used during the life of your lease, saving approximately half of the sales tax you could pay.
- The truth is, if you take care of a leased vehicle and return it with reasonable wear and tear, you will be fine. All the details are in the lease agreement, so you know what to expect when you begin. Damage or excessive wear over and above what is acceptable is common sense, so there shouldn't be any surprises.