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Should You Lease Or Buy A Car?

Should You Lease Or Buy A Car?


– [Narrator] One of the biggest questions auto buyers consider is
should I lease or buy? Here are some tips to figure
out which is right for you. Leasing a car is much
like leasing an apartment. You sign a contract to pay a fixed price to cover a fixed mileage
over a fixed period of time. Your monthly lease payment
depends on several factors including the vehicle’s price
and your down payment amount. As a general rule, leasing
is cheaper per month than buying, all other things being equal. You could also consider a one-pay lease. Paying for the whole lease in one lump sum can save you significant money in fees but you need to have the cash on hand. It’s not for everyone. Leases are cheaper because
you won’t retain any equity. For better or worse, once the lease is up you’ll simply pay for any
damage or mileage overages, then return the vehicle
unless you buy out. In contrast, financing to buy a car results in a higher monthly
loan payment than leasing but you’ll eventually
own the car outright. You can only lease at the dealer but you can get auto
loans at your local bank or credit union and you can
usually get a better deal. Know your credit score, shop loan rates, and get pre-approved before
heading to the dealer. Check out the auto blog loan calculator to explore your options for loan payments. There are pros and cons to both options so here are a few tips to
help make your decision. Leasing may be a good choice if you don’t wanna put down
a large chunk of money, you want a new car frequently, you’re okay with having a car payment, you drive fewer than
15,000 miles per year, you generally keep your cars
in good, undamaged condition, and you qualify to write off the lease. And financing to buy a car
may be a good choice if you can afford a higher monthly payment, you drive a lot, you don’t
need a new car very frequently, your cars tend to acquire
a few dings and scratches, and you wanna stop making
payments at some point. With these tips, you should
have a much better sense of whether leasing or buying
is the right move for you. Visit autoblog.com to learn more. (cheerful music)

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4 thoughts on “Should You Lease Or Buy A Car?

  1. Lease for the miles per year you drive & $0 money down. When month 35 comes up go to Vroom, Carvana, Carmax, AutoNation, and see who will give you the most money for it. Lately it's been Carvana. Repeat.

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