Leasing vs. Buying
When it comes time to buy a new car, one of the main questions you’ll need to ask yourself, “Should I lease my next vehicle?” Don’t believe someone you know who had 1 bad experience with leasing. Do your research, crunch the numbers, and make your own decision.
Reasons for purchasing a brand new (never owned) vehicle
Forget leasing vs. buying for a second. Start by understanding the reasons why you want to purchase a brand new vehicle in the first place. Here are some common reasons people go new:
- Less repairs
- If repairs are needed, new vehicles have a warranty
- Get the most up-to-date features
- Less risk—even though used cars are cheaper, they carry more risk of repairs & breakdowns
- Get exactly what you want—you have a choice of color, options, and, therefore, price with a new vehicle. Used vehicles are limited by what’s available.
- No need to research previous owner/accident history
- Choice of where you buy—with a used car, you’re locked in to buying where the car you like is
- New car smell—no previous messes, stains, smells, dog hair, etc.
These are just a few of the most common reasons. Now, let’s also forget the words leasing & buying. Both of them are just ways to pay for a car. Most owners want a specific car at the best possible value. Period, end of story. So, do your research & figure out how much leasing will cost you per month and how much purchasing will cost you per month.
Who shouldn’t lease:
Ok, it’s easier to explain what customers shouldn’t lease. If you don’t fall into the categories below, you are a leasing candidate.
- People who want to drive a car for 10+ years
- This person is better off buying a brand new car with the maximum length/mileage service contract available and taking a loan on it for as long as possible. So, pretty much an 84 month loan + a 10 year/150,000 mile service contract.
- People who drive well over 20,000 miles per year
- Extreme high mileage drivers are also better off “keeping it until it dies” and maxing out a service contract.
Ok, if you fall into 1 or both of the above groups, stop reading now. Still with me? Good.
Stick around for Part 2 of this blog where we dive deeper into how you can decide whether leasing is right for you.