Should I Buy or Lease My Next Car?

It’s time for a new car, and the question you’re asking yourself is if it’s better to buy or lease. Consider these tips to help make an informed decision.

Buying a Car

Pros

The main benefit of buying is it’s your vehicle to do with as you please. This means there is no restriction on mileage, you can repaint it, customize it, trade it, or sell it. You can keep the car for as long as you like since there is no term end-date, like a leased car.

Cons

Payments will be higher than a leased vehicle, repair costs are on you once the warranty expires, and you are responsible for trading or selling the car.

Leasing a Car

Pros

Leasing a car offers several benefits such as a lower payment. At the end of the contract, you may have the option of purchasing the car, or, turning it in and starting a new lease, which means you’ll always be driving a new car. Also, the car is under warranty throughout the term of the lease.

Cons

Leasing usually requires excellent credit and a reliable source of income. The car must be properly maintained throughout the lease term. A set number of miles is allowed throughout the term.

Whether you choose to buy or lease, it’s a big decision and an important investment. Do your homework, ask questions, and take a test drive to find the right fit for your budget and lifestyle.

Image via Flickr by RL GNZLZ

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