Car leasing vs. Buying: What’s Best For You?
Buying vs. leasing is a controversial topic. Bring it up at the dinner table, and you’re sure to encounter a variety of opinions. The simple truth is, there’s no straight-forward answer. Buying has its own advantages, as does car leasing, but the ultimate decision should be a reflection of multiple factors.
1. Finances: When considering whether to purchase or lease a car, keep in mind your budget. What can you afford? As an owner, your upfront costs will be higher, as will your monthly payments. However, you will own the vehicle. When you lease a car your monthly payments will be lower. The upfront costs will depend on the amount of money you put as a down payment.
2. Time Frame: How long do you plan to keep the vehicle? If you like to drive the latest car on the market, leasing is the way to go. Drivers who lease can sign a lease as small as 24 or 36 months. At the end of the car leasing period, drivers can return the old vehicle and drive out with a new one on the same day. Drivers who intend on using the vehicle for many years should put serious thought into buying.
3. Miles: Does everyone pile into your car to run errands, go on road trips and carpool to and from school? If so, you’re probably placing a lot of miles on your vehicle. In this situation, buying would be the most beneficial option. Most leasing companies place limits on the number of miles that can be accumulated during the car leasing period. If the driver goes over the mileage, fees or restrictions can apply. If you are a driver with a short commute, who primarily uses city miles and drives in town, leasing is a great option. It allows you to place the wear and tear on a newer vehicle and avoid costly repairs that owners sometimes encounter.
4. Residency: If you are a permanent resident and do not intend on leaving your home state, you are qualified to lease. Most car leasing agencies prefer that drivers remain in the same state that that they leased the vehicle. Between insurance costs and mile limitations, it makes sense. Residents who are considering moving to another state should wait until they move to lease or buy.
5. Repair Costs: Every vehicle needs oil changes, new tires and a fan belt every once in a while, but older models are likely to have more costly repairs. While you may own the vehicle outright, the maintenance costs could begin to add up. If this is a hassle you’d prefer to avoid, looking into car leasing for a newer vehicle will be a better option for you.
FairLease provides fair Dallas car lease. If you would like more information, be sure to visit their website.
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