Buying Vs. Leasing A New Car: Which Is Financially Better?
Do you need to get a car soon? If so, one of the decisions you must make is whether to buy or lease it. Search online, and you’ll find plenty of reasons to choose either option! But, how do you know which one is the best choice for you? It can often be hard to decide whether one option is better for you than the other.
To help you make that decision, I’ve decided to write a blog post that talks about the benefits of each option. I’ve owned many vehicles over the years, some new and some used. As a result, I’ve got a lot of experience in both buying and leasing cars. Today, I’d like to share my thoughts with you on this hot topic.
Rather than give you a list of pros and cons, I’m going to do something better! What I will do is offer you a list of scenarios, some of which will be relevant to you. I’ll then explain whether you should buy or lease your next pride and joy. Check them out below:
Let’s face it; many of us reach a stage in our lives where we are sailing close to the wind from a financial point of view! Does that paint a familiar picture? If so, you’re not going to have a lot of cash to spend on a car.
You might think that all you can do is buy a clunker, but that’s not the case at all! These days, it’s possible to get cheap used cars that got looked after by their former keepers. They will come with a full service history and even offer low mileage too.
In fact, you might feel that you’re buying a brand new car in some cases! The only downside is that such examples aren’t always that common. But, if you spend some time seeking those cars out, you can afford to buy a cheap car that will serve you well for years. All you need to do is spend some time doing your research.
You worry about reliability
None of us wants to drive around in a car that breaks down on almost every journey! The good news is that clunkers are few and far between these days. That’s because today’s cars are more resilient and better built than ones from 20+ years ago.
For the avoidance of doubt, it can often make sense to lease your next car. Why? Well, there are a few reasons. First, you can hand the car back after three years or so. Doing so works well with brand new cars, because the only thing you need to worry about is annual servicing.
Second, if you lease a vehicle, you can incorporate a maintenance plan into the deal. Don’t forget that you can lease some “almost-new” vehicles as well as brand new ones. So, you could, in effect, enjoy the best of both worlds: a cheaper car, and trouble-free motoring!
If you buy your car outright, you seldom enjoy the same benefits. Some dealers might sell you a warranty plan. But, it’ll be harder to get rid of your car if it just keeps developing faults all the time. Whereas if you lease the vehicle, you are just “renting” it and can hand it back after three years!
Your monthly costs are important to you
Some people assume that buying a car means you don’t have to pay any monthly fees like you would on a lease. But, here’s the thing: you do! The only difference is; leasing can often make your monthly costs lower. How is this so, you might be asking?
Let’s assume you are weighing up buying vs. leasing a new Dodge, for example. When you buy one, you still have to pay for tax and insurance, as well as ongoing maintenance costs. But, leasing the same car is usually cheaper, believe it or not! Here’s why:
You don’t have to come up with a large lump sum to get behind the wheel of the vehicle; and
You can combine insurance and maintenance costs into your leasing payments. Many dealers offer discounts on those costs by adding in those extras.
If you want to keep your monthly costs low, it works out better to lease the car you want instead of buying it outright.
You get bored of your cars after a while
If that sounds like you, leasing is the best option for your motoring needs. You only have to “keep” the car for three years or so, and then you can get another new one.
But, if you bought your car, you’ll have to go through the hassle of selling it and then finding another car to buy.
So, which option is the best for you? Do let us know!