Car leasing is good way to drive a new car for many people, but it’s not for everyone.
Whether you should lease, or buy, your next new car depends on your answers to a few simple questions related to how many miles you drive, how often you want a new car, the stability of your lifestyle, how your care for your vehicles, and whether the concept of ownership is important to you.
Let’s take a look.
Do you enjoy having a brand new car every 2-4 years?
Leasing makes it easy to have a brand new car, with full warranty coverage, every few years without the hassles of trading or selling an old car.
Will you not want to end your lease early?
Leasing is best for people who have a secure and stable job situation and lifestyle, and will not want to end the lease early, which can be expensive.
Do you drive no more than 12,000 miles a year?
If so, leasing may be good for you because it’s designed to benefit low-mileage drivers. If you drive more miles, you pay a per-mile fee at the end of the lease.
Do you take good care of your cars and maintain them?
Leasing requires regular care, maintenance, and full coverage insurance. Excessive wear and tear or unrepaired damages will result in lease-end charges.
Do you want lower monthly car payments than loan payments?
Lease payments are only about half of loan payments for the same car, same term. This is the primary attraction and benefit of leasing.
Do you not mind having no ownership in your car?
Leasing’s low monthly payments don’t build ownership equity. You can return the car, or make a decision to purchase it, at the end of your lease.