To Buy or To Lease?

To lease or to buy, that is the question facing a great many people interested in driving a new car today.

Leasing a new vehicle is certainly a great option for some people. Just as buying outright is the best idea for a great many others. Deciding which is right for you means taking a few simple things into consideration.

With a lease you don’t have to worry about maintenance bills. Keep the car clean, in excellent condition and keep it under your mileage limit and you can return it at the end of the lease and swap it for a brand new car. Most of the time, if you lease your vehicle properly, the dealer will get you an even better deal on the next lease, possibly even putting a little cash in your pocket before you drive it off the lot.

A lease will also likely offer you lower monthly payments, a great deal for those buyers wise enough to stay on a monthly budget.

Of course a lease also means you have a mileage limit, a host of other restrictions and don’t ever actually own anything. You simply pay for the right to drive someone else’s vehicle month after month and year after year.

If you are someone who prefers paying rent over obtaining a mortgage, you might look at a lease as a great option.

If you buy, however, you get none of the restrictions that come with a lease. Drive as many miles as you want without worry and when it’s paid for the payments end and the vehicle is completely yours. Of course along the way you are liable for all maintenance costs and might possibly be stuck with the paid for vehicle longer than you’d like if you can’t find a new one at a price you can afford.

If you have excellent credit, and you practically need to have excellent credit to get an automobile loan today, you stand a pretty good chance of getting a very good deal on a new vehicle. Lending rates fluctuate a great deal depending on who you get your auto loan from, so be certain you check around. Don’t just take the first deal that comes your way. And be ready to haggle with the bank and the dealer when it comes to terms for your loan.

Another advantage for those who buy rather than lease a vehicle is the ability to refinance your automobile loan if rates come down. Financial institutions do not want you to fail. They want to loan you money at the best rate and they want you to pay that money back at some point. It is all a numbers game to them. If they can adjust the rate to get you a better deal, they will.

If you are locked into a lease, however, what you have agreed to pay every month will not change for the life of the lease no matter how much rates fluctuate. Sure, you might be able negotiate a better deal on your next lease, but your current lease is something you are stuck with.

So before you lease or buy, do your homework. One is the best deal for you. Which one, is the question.

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