To Buy or Lease your next car
To Buy or Lease your next car?
Ah, the eternal question. What makes the most sense for you? Are you the type to get bored of a car quickly? Do you want a car that is maybe more expensive than what you can afford to buy? Do you consistently drive a lot of miles? There are tons of questions to consider when you’re looking to snap up a new whip.
The truth of the matter is that Buying vs. Leasing is all personal preference. Leasing has it’s perks such as you get to drive a new car every two to three years and the “out of pocket” expense is generally cheaper then when purchasing a new vehicle. Also, maintenance should be quite minimal, as the car will remain in warranty during your lease. However, insurance rates tend to be higher and you are usually required to carry gap insurance which can be expensive.
In the case of buying a new car you typically have to be prepared to make a decent sized down payment and you will be responsible for maintenance once your warranty runs its course. The good news is once you’re done paying down the note, the vehicle (equity) is yours to keep, just like a house.
In our case, we prefer to purchase our vehicles from the second hand market. As the buyer of a second hand vehicle you avoid taking the “ding” on the new car depreciation and insurance rates are usually more reasonable. With any luck, you can find a car where the original buyer purchased the extended warranty and that will translate to you as the new owner. This alone could be worth it’s weight in gold should you have a mechanical need. With all the lease “turn-ins” these days there are tons of great cars 2-3 years old that can be had for a good price. We tend to lean towards these when considering a new vehicle.