When it comes to picking up your new auto you need to make a choice between buying that new car or opting for a lease scheme. Leasing has become far more popular in the last 20 years and there are some fantastic deals out there for anyone who is looking to lease. The decision as to whether to buy or lease comes down to quite a few considerations, thinking hard about these before making a decision will ensure that you not only get the vehicle which you want, but that you also get it at a great price.
Leasing a car will give you far lower monthly repayments compared with any kind of car finance which you may pay and this can really help take the pressure off your monthly cashflow. Leasing a car will allow you to have a little more liquid cash each month and it can be a great option for many when they have their hearts set on car which is on the pricier side, you could lease a Mercedes for example and find the monthly lease costs significantly lower than a car finance deal on the same model.
How Long do You Want The Car?
A key consideration to make is how long will you plan on keeping the car for, if you are looking longer-term (any more than 2-3 years) then buying a car will always be the smartest financial decision. If however, you are looking for a two-year plan then leasing will be better value, the money that you would receive for a car bought brand new and sold two years later would be far less than you had paid, you can avoid this kind of depreciation costs if you lease. It is worth noting that if you want to get out of your lease term early then there will be charges of up to 6 months of repayments.
How Many Miles Do You Do?
If you are someone that racks up over 15,000 miles per year then you should think about the fact that lease companies will charge you for extra mileage and that buying may be the smarter option here. Over this limit and you could be paying 10,15 or even 20 cents extra per mile which will soon add up.
What Kind of Driver Are You?
If you are someone who likes to take risks, mash the gas and take corners at speed then leasing a car may not be your best option here as you will see hefty charges as a result of wear and tear. Anyone who is at a higher risk of bumps or scratches, perhaps families with kids, will have to ensure that they get a good deal under the wear and tear section of their leasing agreement. If the car is your own then naturally you will need to pay for these things to be repaired as and when they happen.
Do You Drive For Work?
If lease a car and drive for business then a portion of your car’s financing costs and depreciation can be written off your taxes, something that is definitely worth considering.