The decision to lease or buy a vehicle usually centers on lifestyle and financial situation. Simply put, there are benefits to leasing a vehicle, and benefits of buying one, too.
When leasing a vehicle, there’s the possibility of monthly payments being lower, without a down payment. Leasing also lets you drive a better vehicle for less money, with fewer upfront costs each month. If you’ve been looking for a luxury vehicle but think it may only be a sound financial decision for a short period of time, you can eliminate the thought of buying it and lease instead.
When it comes to the topic of maintenance and repair, the dealer may have a factory warranty, with repair costs covered throughout the entire lease term. A leased vehicle should also save money on maintenance and repairs, because when the lease term ends, the car heads back to the dealer. You don’t have to worry about what the car looks like in year five, year seven, or year ten when minor maintenance issues of years past can turn into more serious concerns.
Perhaps the most advantageous reason to lease? After the lease term is up, typically two or three years, you can upgrade and get the latest driving, safety and tech features offered in a new model.
When buying a car, things are flexible. Make the changes you want, whether it’s modifying the audio set-up, throwing some of your favorite bumper stickers on the exterior, or add interior accessories. It’s yours, and you get to do what you want with it.
There’s also freedom to sell or trade in the car on your own terms. That might be two years. It might be five. It could even be 20. You can sell the car when you want to a dealership or private seller, or even pass it off to your kids.
Mileage is another thing to think about. When buying a car, you can drive it as far as you want, when you want. Many leases place limits on how much driving you can do, often around 12,000-15,000 miles per year with extra fees applicable if you go over the limit. You’ll want to consider how much driving you do before making your decision.