Leasing Vs. Buying A New Car

Marilyn Katz
July 7, 2011

Do you love to pick out a shiny new auto every few years? Some people find that they need a new car for business, or they just enjoy new cars. Others would rather drive their old cars as long as they can. They would rather live without car payments, so they drive vehicles until they cannot be repaired any longer. Which type of vehicle owner are you?

With that in mind, let us consider the things you have to think about when you are comparing a buy vs. lease car deal!

Of course, if you like the idea of going without auto payments for awhile, you will probably just want to invest in buying a new auto. You can pay cash, or get the loan paid off, and then you can use the extra cash to start saving for your next car. If you do not mind having a vehicle for several years, and do not always have to have the latest and greatest, you may want to buy a car.

However, if you fall into the category of people who cannot resist a new car purchase every few years, you may be better off by taking out a vehicle lease. This allows you to make payments for the term of your agreement. A lease makes it simpler to get a new car freuently. You do get the luxury of picking out a new car quite often.

Your best choice will depend upon several different things as well. Your credit, the amount of money you have to put down, and some other factors have to be considered. The type of purchase or lease deal you can get will depend upon your local area and the kind of car you want.

For example, some lease deals may have mileage restrictions. If you go over the agreed milage amount, you will have to pay extra. People who drive a lot, for pleasure or business, may not be satisfied with typical lease agreements.

In addition, you may think you can avoid making a down payment when you lease a car. Actually, some of the lowest advertised lease rates will come with contracts that do require a large down payment or "drive off fee.You may be spending a lot of money before you ever drive off the lot. The fees may amount to more money than a down payment.

You cannot do without a car policy either way. You will be responsible for the vehicle if you buy or lease it. So this is not really a big consideration. New cars can come with good insurance prices anyway. You can always check some online car insurance quotes for an easy way to compare prices and plans.

There is not one perfect answer for everybody who wants to get another car. The important thing is to think about the terms of any new car purchase or lease agreement, and then to pick the right answer for you!

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Should you buy or lease your next car? Get some more information to help you decide which alternative will be the best one for you!

http://www.over50web.net/finance/save-money-finance/the-great-buy-vs-lease-autos-debate/