The Car Coach: Should I lease or buy a car? Which is best?
Buying or leasing a vehicle can get confusing, knowing the facts will tell you which is the better option? The truth is that there are two aspects to this decision.
If you’re in the market for a new car, you may be debating whether to buy or lease. The choice between buying and leasing has often been a tough call. On one hand, buying involves higher monthly costs, but you own something in the end. On the other, a lease has lower monthly payments, but you get into a cycle where you never stop paying for a vehicle.
Pros to Leasing a Car
Cons to Leasing a Car
- When you lease, you’re basically paying for the use of the vehicle for the first 2 or 3 years of its life. No equity
- Limited Mileage – typically 10,000 – 15,000 miles
- Hard to Cancel. There are companies like www.swapalease.com but there is a financial punishment, lease termination fees.
- Requires Good Credit. The typical minimum for most dealerships is 620. A score between 620 and 679 is near ideal and a score between 680 and 739 is considered ideal by most automotive dealerships.
- Lots of Fees at the end and on over mileage
- No Customizations.
- Average cost to lease is 14%. This is the most expensive way to own a car.
The difference between leasing a car and financing a car is that with financing, you are purchasing the vehicle. You will still make monthly payments, but at the end of the term, you’ll own the car.
Pros to Buying a Car
Cons to Buying a Car
Choosing whether to buy or lease a car is a serious financial decision. Research terms, compare payments, and calculate how much you’ll pay in each option over the term of the loan or lease. Always negotiate the price first whether you opt to buy or lease a vehicle. And Never Pay Retail.
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