Leasing vs Buying a New Car

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By: admin
December 1, 2016

Leasing vs Buying a New Car

To lease, or to buy? That is the car shopper’s question, and... we have the answer! Read on for our breakdown of the benefits to each of these options, and see Carsquare if you are thinking of either leasing or buying a new car.

Lease if…

1) You don’t want to commit to a car. When the lease is up, you’re free to lease something newer and better down the line - sooner than you may be able to afford a new car if you were buying one. 

2) You want to test drive a car before you buy it. This is the flip side of reason number 1. If you fall in love with a car over the lease period, you can always opt to buy it when the lease is up. 

3) Money matters. Chances are, a monthly lease payment will be significantly lower than a monthly loan payment - so you can get that shiny, new car without the financial stress of buying it. 

4) You want to count on a warranty. Lease periods tend to fall within a car’s warranty, so that unexpected scratch or fender bender will be covered. 

5) You don’t want to deal with selling or trading. When the lease is up, you’re free - you don’t have to worry what to do with a car you no longer want. 

6) You only need a car temporarily. If you’re only relocating somewhere where you’ll need a car for a finite period of time, it’s probably easier and cheaper to lease. 

Buy if…

1) You’re going to need a car for a while. If you’re going to need a car permanently, you may as well consider permanently owning one - especially since buying is generally cheaper than leasing after a certain point. (What point is that?)

2) You’re ready to build equity. This is a benefit of those higher loan payments!   

3) A mileage restriction isn’t practical. Whether you plan on taking long road trips, have a heavy commute or simply just drive a lot, mileage restrictions imposed by a lease may not work with your lifestyle. 

4) To get rid of car payments. As soon as you pay off the car, you can kiss monthly payments - and budgeting for them - goodbye!

5) You know you’ll put a lot of wear on the car. Just like renting, leasing requires some level of keeping the car in pristine condition. If you’re more damage-prone, you may be better off buying.