Should you lease or buy a vehicle? This is a question that almost every person asks himself as he decides to drive a new (or even used) car. The options are pretty confusing and no one wants to waste his time and money making the wrong choice. Though it should be mentioned here that there is no wrong or right, just like there does not exist one generic rule that works for all. This is quite an individual case and everything depends on you: what type of a vehicle you are looking for? How much are you going to drive it mileage-wise? For how long do you want to own it? How much do you plan to spend on it, etc… Leasing versus buying comparison can help you determine which option is the best for you. When you decide to buy the new or used car you, basically, agree to pay for its entire cost. Whereas by leasing the car, you pay for the portion of its cost. If you dont want to spend your cash, than leasing is the best choice for you, as in this case you put much less money down. And if you have a good credit history and come up with some great lease specials, you are even likely not to put any money upfront, and lease the car with 0 down payment. Another question that you should ask yourself is “how much do you intend to drive your new or used car? If you are driving more than 15,000 miles a year, than you should consider the buying option, because there are leasing companies that may charge you up to 20 cents a mile for any additional miles you have driven throughout the time you’ve been leasing the car. Besides, when you lease a car you have to make sure that when the return date is due, the car is in good condition, otherwise you will be charged for any damage that was caused to the vehicle. So you have to take that into consideration when leasing a car – you are fully responsible for its condition. If you are going to drive long distances, and as a result of this you can not predict whether or not there will be a damage caused to the car, you’d rather consider buying it and “abusing” as much as you want without the fear of being charged. For those of you who want to change cars every two to three years, leasing is again the best option. But if you intend to drive the car for 6-7 years, you’d better purchase the car, because that way you will save money and end up paying less on a long run.
In some cases people use their cars for business purposes. So if the car for you is more than just a means of transportation or a luxury toy, and you aim to use it for business purposes, then once again leasing is the way to go. Why? Because this way you can deduct a portion of the car’s depreciation from the taxes, and you can deduct much more if you don’t buy the car. However, it will always be better to consult your tax specialist about the cons and pros before making the final decision, because when it comes to taxes and businesses there may be certain exceptions and the rules that may work for many suddenly won’t work for you. So just in case consult your tax professional about leasing or buying the car for business purposes.
If you are one of those car lovers who enjoy adding new parts to their ride, tune iat and “pimp” it, than you should not consider the lease option. Although in some cases it is not prohibited to change certain parts of the leased car, nevertheless, it is not recommended to do so, and you may have to pay for the damage that was caused to the car as a result of all the changes you have made. Also, you will have to remove the added parts. So if you are planning to play with overall looks of the car, intend to spend lots of money on various custom parts to give a new look to your ride, then consider the buying option instead. This way you can do whatever you please and won’t have to return the car in a few years and end up paying for the possible damage.
One of the advantages of leasing the car consists in the fact that most vehicles are under warranty as long as you lease them.
Certain people prefer to lease their cars in hopes to make more money on them in future. How? By buying and then selling the leased vehicle for more than the risirual value is. At the end of your lease term you can either trade-in your car, or buy it for the residual value, or return it and get a new leased car. However, if you decide to end your lease before the term is due, you will incur early termination fees. In order to help you avoid this situation, some auto leasing centers offer a so called ‘lease reverse’ program. They buy your lease and pay it off for free. This is a great service that will free you from and inconvenience related to early lease returns.
In order to get the best lease or buy deals on the market, you will have to turn to professional leasing centers, who know all the ins and outs of the business, deal with dealers on a daily basis and have access to information that is not available to regular customers. Professional leasing or buying consultants can help you find the best buy or lease specials that will fit you current budget. You wont have to go from one dealer to another comparing prices and options. The team of advisers will do that (and many more) for you. Make sure to provide them with detailed description of what you are looking for in your future vehicle and do not hesitate to ask questions. Some leasing agencies also provide delivery to home or office and arrange a detailed walkthrough with features and options presentation of your new leased or purchased car.
So, make sure you take into account all above mentioned factors when you face the question of either leasing or buying a car.