Your Next Car: Buy or Lease?

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Real Estate

Your Next Car: Buy or Lease?

Pros of leasing:

l Small or no down payment

l Lower monthly payments (even compared to 0 percent loan)

l A warranty for the life of the lease

l Driving more car than you could afford to buy

l Brand-new car every 2-5 years

l You pay for only a portion of the vehicle's cost

Cons of leasing:

l Limited mileage

l You’ll never actually own the car

l Permanent monthly payment

l Penalties for turning the car in early, undue wear and tear, going over the pre-specified mileage limit

Pros of buying:

l One day, it’ll be yours, all yours

l No limit to mileage

l End to payments

l Lower auto insurance cost

Cons of buying:

l Long-term cost of buying a car is less than leasing

l Less complicated than leasing

l A portion of every payment you make is lost to depreciation

l Good-sized down payment

l You pay for the entire cost of a vehicle, regardless of how many miles you drive

 

I guess one great pro is that you can drive a luxury car even if you could never afford to purchase one!  There is also two ways to look at that....One, why do that to yourself!?  This would be like going to a candy store knowing you can't purchase candy.  On the other hand, it might give you the push you need to one day work up to being able to afford that luxury car and home!  #luxuryisitwhatyouwant #realestate #lovemyjob #leaseorbuy #rentorown