Are you in the market for a new vehicle? If so, you may be wondering whether you should buy or lease. Both options have pros and cons, so it can be challenging to decide which is right for you. In this post, we’ll break down the key differences between buying and leasing a car so that you can make an informed decision. Stay tuned for more tips about how to find the best deal on a new ride.
When to Buy a Vehicle
Shopping for a new car can be time-consuming and stressful. Driven to find the perfect vehicle, some shoppers fall too deeply in love with their dream cars. As explained below, there are many reasons why buying may make sense for you.
You Commute Long Distances
If you commute over 40 miles each way, you may want to buy a car. The hassle and time spent driving back and forth to work every day can add up quickly. Plus, if your car breaks down or is in an accident, it’s going to take longer for you to get to work. If your job depends on showing up on time, having a vehicle you own is usually the safer bet.
You Want to Keep Your Vehicle for a Long Time
There’s no question that it costs less money over time to buy than it does to lease. If you want to keep your car for years or decades, buying often makes more financial sense than leasing. You can either pick out a new vehicle that accommodates your spending limit or buy a gently used car.
You Have a Family
If you have a family or plan to start one shortly, then buying may be the best option for you. If your car breaks down or is totaled in an accident, being able to get around without having to rely on others is very important.
When to Lease a Vehicle
Leasing your vehicle may be the right choice for you if any of the following are true.
You Need a Vehicle for a Short Period
If you do not keep your vehicle for more than five years, leasing is usually the better option. The process of trading in your car each year to get a brand-new one can be highly stressful. If you’re unsure whether or not you’ll want to keep your next vehicle forever, leasing may be best for you.
You Want to Pay Less
While you can afford the payments, leasing is often cheaper than buying because you don’t have to pay sales taxes or other fees that come with purchasing a car (like insurance). However, you’ll also give up some of the benefits of owning, like equity and trade-in value.
You Don’t Want to Commit to a Car Purchase
If you don’t know how long you plan to drive your car or what kind of model you want, leasing may be right for you. Leasing allows you to get a brand-new vehicle every few years without committing yourself to anything.
In general, if you don’t want to commit to a vehicle purchase or if you don’t have the funds for one, leasing is probably the right choice. Be sure to afford your lease payments before signing on the dotted line.