The prospect of getting a new car to drive is pretty exciting for most people, especially if you’ve had your current one for a while now. However, when it comes to get a new car, the option to buy or lease can be pretty confusing for many people.
While there are definite upsides and downsides to both, the right decision for you really depends on you and your financial situation. Use this guide to help you make an informed decision when it’s time to buy or lease a new vehicle to drive.
When you choose to buy a car, you usually have to put down a sizeable down payment. That isn’t always the case with leasing, and down payments are always lower than buying unless you have exceptional credit or find a spectacular deal.
If you don’t have a lot of money in hand, a lease may be a better choice if you have a stable income.
Leasing Is Like Renting
Some people compare leasing a car to renting an apartment. Yes, you can use it while you’re paying for it, but when you stop paying, you don’t have anything to show for those payments. That’s definitely the case with a lease.
When you stop making payments, you won’t have any equity in the car, so you won’t get anything back like you would if you could sell it at that point.
Are You Financially Secure?
If you’re financially secure enough, buying a car is often the best bet because you’ll be able to make your payments and cover repairs with ease. When you no longer want the car, you’ll be able to sell it to cover part of the total cost. That’s something you just can’t do when you lease your vehicle.
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