Photo by Darwin Kong on Unsplash
So my girl Sheba is finally putting the brakes on me. When I paid cash for her I said that I was going to roll that girl until I can’t roll her anymore! With this entrepreneur life, no car payment has been the business, but alas Sheba is about ready to give up the ghost :(. I’ve been on the hunt for a new car, but this time around being smart on my journey to financial freedom, I’ve been wondering is leasing a better option. I’ve been scouring the internet and found two great articles that offer good insight on the buy vs. lease decision. I haven’t made my final decision, but leasing IS in the lead right now. I have my eyes on this 2018 Dodge Durango SRT; never thought I’d be interested in a Dodge, but she is a beaut! I’ll keep you posted.
Are you on the fence about the buying a car versus car leasing? Carlease.com makes it easy for you to understand your options and make the most intelligent decision. Use the car buying vs. leasing guide for an unbiased head-to-head analysis.
Bottom Line on Auto Purchasing
When you decide to finance a vehicle, you’re making a long-term commitment to purchasing, owning, and eventually selling the vehicle. Although everyone is different, purchasing a vehicle is usually the most suitable solution for customers looking to own the same vehicle for many years. Another type of customer who’s best suited to finance a vehicle are those who have the cash to put down a larger down payment to avoid being upside down, which explains owing more than the vehicle is worth.
All new vehicles come with what is known as a factory warranty. Whether it’s a 5-year/60,000 mile warranty or a 5-year/100,000 mile warranty, you should be prepared to foot the bill for repairs once the warranty expires. While the monthly payments are higher on a vehicle purchase, the upside is you’ll own the vehicle once you finish paying it off in 5, 6, or 7 years.
Bottom Line on Leasing a Vehicle
In contrast, leasing a vehicle requires much less upfront cash. Most leases offer no or a low down payment and have significantly lower monthly payments. As a result, auto leases allow you to drive a better, nicer, newer, and more handsomely equipped vehicle for much less. You can potentially drive the car of your dreams at monthly payments you can afford.
And when your leased vehicle needs repairs, your costs are exponentially lower because the vehicle remains under the factory warranty. While purchasing a vehicle means you’ll pay taxes on the entire purchase price, you’ll only pay taxes on the portion of the vehicle you use with an auto lease, which means lower taxation. At the end of the term, you don’t have to worry about selling the vehicle or trade-in hassles.
Get the Best of Both Worlds with Lease to Buy
Why decide when you can have the best of both worlds with a lease-to-buy option. With this solution, you lease the vehicle for the term you decide and enjoy all of the key benefits, such as lower monthly payments, low or no down payments, etc.
Let’s say you lease a vehicle and find out you actually love it. At the end of the lease, you can choose to purchase the vehicle for its residual value. The lease-to-buy option is one of the most flexible arrangements. On the other hand, if you would like to pursue other vehicles at the end of your lease, the lease-to-buy options offers the flexibility to do as you choose.
Learn If a Car Lease is Right for You
We get it — every customer is different and there are no one-size-fits-all solutions for finding your next vehicle. As a result, it’s imperative for you to:
- Closely analyze each option;
- Understand the pros and cons of leasing and purchasing a vehicle; and
- Make the most intelligent decision.
Fortunately, you’re not alone. The experts at Carlease.com will work to understand your needs, explain your options, and guide you toward the best solution — whether it’s auto leasing or purchasing.
Best of all, you can get your questions answered and even lease a vehicle without ever setting foot in the dealership.