Thinking about getting a new vehicle? Your next step is to decide whether buying or leasing is right for you.
Buying gives you freedom. Leases come with both “wear and tear” restrictions and mileage restrictions. Exceed them and you will have to pay a charge at the end of the lease. The most appealing aspect of buying for a lot of people comes down to the fact that they don’t have to worry about any of that.
Leasing means modern technology. When you buy a vehicle, it’s most economical to keep it beyond the first three years. It’s during that period that a vehicle depreciates significantly, its value often being about 50% after that time. That also means putting up with obsolete technology. When you lease, the technology is often still considered new or newish even at the end of the lease.
Buying gains you equity. With every loan payment, your vehicle is becoming more and more your own. This means that you can keep it as long as you’d like. You can also sell it whenever you want.
Leasing means fewer hassles. We are talking hassles, and expenses, that have to do with repairs. Vehicles rarely require repairs over the term of a lease. This permits a certain peace of mind that some people find desirable.
There are certainly advantages and disadvantages to either choice. It’s just about examining the facts and seeing what works for your situation. Here are the facts!