Should I Buy Or Lease a Car?

When shopping for a new car, making the decisionthat is further away from your home. Another
to buy or lease a car can be a tough one. Onepossible issue to remember is that insurance is
option isn't always the clear choice over thetypically higher on leased vehicles. With all of these
other; much depends on your own personalextra fees and charges, you can end up paying
situation. The answer to the age-old question,more for a leased vehicle than you will when you
"Should I buy or lease a car?" is often more thanpurchase one.
just a financial comparison, as each option has itsIt's important to note that some U.S. automakers,
own set of advantages and disadvantages relatedsuch as Chrysler, are beginning to stop offering
to your lifestyle and priorities.vehicle leases. The reason for this is mostly due
Pros & Cons of Leasing a New Carto declining SUV and truck sales. Chrysler and its
If sporting a new high-end car equipped with thelenders have suffered large losses in order to
latest technology and safety features everywrite down the value of leases on those types of
couple of years is of great importance, thenvehicles.
leasing may be right for you. Common car leasingPros & Cons of Buying a New Car
advantages include a low or no down payment,If you plan to keep your vehicle for several
lower sales tax and lower monthly payments.years, then buying may be the better option for
Leasing can also provide flexibility for some (butyou. Although you will initially have higher
not all) major life changes, such as returning yourpayments, it is still usually less expensive than
two-seater after a couple of years for a morelong-term leasing. Once your loan is paid off, the
family-friendly vehicle. It costs less to simplycar belongs to you. The only remaining expenses
return a leased two-seater than it does to buy,are gas, insurance, DMV fees and repair and
and then sell it after a couple of years.maintenance costs - no more monthly car
Additionally, typical car lease terms are for threepayments. If you tend to do a lot of driving, you
years, so you won't have to worry about payingwon't have to worry about the mileage limits that
for major repairs because at that point, mostcome with leases, too. In addition, insurance
cars are still covered under warranty.premiums tend to be lower when you buy vs.
On the flip side, there are also severallease a car. Also, since the car is yours, you can
disadvantages to leasing a car. You have twodo what you like with it - from paint jobs to
options when your lease expires - either turn inother customizations.
the car, or buy it. Buying out your lease is rarelyThe main disadvantages of buying a car are the
a good deal - the price is generally inflated as ahigher upfront costs (down payment, sales tax,
way for the company to recoup losses on thoseetc.) and higher monthly payments. Also, you are
low monthly lease payments you had.responsible for any maintenance and repair costs
If you decide to return the car and it's not inafter your warranty expires. Often times,
perfect condition, you probably will face severalhowever, these costs are still less than the
fees for wear and tear. Another common issue iscombined costs of leasing.
mileage. Most leases allow you to drive 12,000Buy a "New" Used Car
miles per year. For every mile you drive over thisA third option, buying a "new" used car, should not
limit, you are charged an extra fee. After yourbe overlooked. A "new" used car is a car that is
daily work commute, this may not leave you withonly a couple of years old and is still in great
many miles leftover to run errands, take roadcondition. So it's basically like new, but for a lower,
trips, visit family and friends, etc. These extramore affordable price. This is especially good
mile charges can add up quickly - especially if youconsidering brand new cars depreciate 20 to 30
have unexpected life changes, such as a new jobpercent once you drive them off the lot.