Nothing is black and white, no matter what people tell you. Take getting into a new car. Many will tell you that it makes more sense to buy. But, others will say, there are times when leasing makes more sense. It isn’t easy to know what’s your best option when people will tell you two different things. So…the question: should you buy or lease a new car?
Should You Buy Or Lease a New Car: The Million Dollar Question
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What’s Your Best Option For A New Car? To make the decision for yourself, you have to see both sides and then evaluate based on your own situation. Leasing vs buying is not an easy thing to advise, so this article is for those who are having a tough time deciding. With the right information, make an informed decision that makes sense based on your own set of circumstances.
So here we go, take a deep breath and follow along as we try to answer what is your best option – should you buy or lease a new car?
Where You Live Matters
When you see those commercials for new cars on TV you always see the MSRP. That’s the manufacturer’s suggested retail price. This number is not universal, however. If you go to a Chevy dealer Utah, for instance, the price may be more or less than what you saw on the commercial.
Also, take the car expenses into account another expense line item depending on where you live.
Insurance is the most fluid of the expenses that changes dramatically where you are in the US. There are states that have regulations about what kind of insurance you need based on whether you are buying or leasing your car.
Research and (try to) understand how where you live impacts your decision.
Leasing Advantages
One of the biggest reasons to lease a car is that you always have a new one. This means that you rarely ever have to deal with having a car in the shop.
Usually, problems start happening after year five, and that is when you are trading in for a new one, or no longer need to lease a car and can buy one.
Another big advantage is trying a car before you commit to buying it.
If you drive your leased car for two years and then find that you don’t actually like it much, simply let the lease expire and either lease another or buy a new car.
And, if you are leasing a car that you use for business, then you get some nice tax benefits that don’t normally come from buying a new car.
Finally, there’s that sticker shot! The average car prices continue to rise, but your paycheck remains stagnant.
With a lease, buyers make a monthly payment to drive a new car for a set term. That payment is often less than the monthly cost of financing a new vehicle, but buyers must return the car at the end of the lease term.
So low cost in, but your reward is a new car!
Buying Advantages
The biggest advantage to buying is that at a certain point the car is paid off and you don’t have payments anymore. If you lease one vehicle after another, then you have a sort of permanent car payment.
Buying a car allows much more freedom to use your own car the way you see fit. If you drive a lot, no need to worry about going over a certain mileage limit as you do when you lease. You don’t have to think about your mileage when you own aside from how it affects the resale value if you are racking up the miles.
This freedom also includes upgrades and customization. Tint the windows, add a spoiler or paint it another color. You can’t do this when you lease.
The bottom line? You are the one who must decide whether you should buy or lease a new car.
