Has your current vehicle seen better days? If so, you might be wondering whether you should buy or lease your next car. The choice can be complicated so we’ll boil it down for you:
Leasing is a good option if:
- You drive few miles
- Trade cars frequently
- Want a lower down payment, monthly payment and repair costs if anything unexpected surfaces
But remember, you don’t own the car!
If that sounds like you, leasing might be best. But be sure you understand the fees and look over everything carefully, and remember that you won't get the money from selling the car when you need a new one.
Buying the car is a good option if
- You drive more miles than average
- Want to own the car for 4 years or more
- Want to sell the car when it is time to buy a new one
Buying a car is the most economical option because once it’s paid off, you can drive it with no payments until the wheels fall off. Speaking of which, you’re responsible for repairs after the warranty runs out.
Bottom line, lease it if you’re a short term kind of person. Buy it if you look at the long term.
Do us a favor please. Tell your friends about us so they can be smarter about their money, too.