How much does ownership mean to you? Do you tend to trade in your vehicle after a few years? Do you travel a lot? Answer these questions and you’ll know whether to buy or lease.
Leasing allows drivers to enjoy a new car every few years when a lease expires, and many lessees can drive nicer vehicles than those who finance because upfront charges are typically lower in lease deals. With that said, financing a vehicle gives you ownership and doesn’t limit you to lease contract parameters like mileage limits.
When you finance your car, you own it outright as long as you continue to make payments to your loan financier. You can drive it as much as you want, take it where you want and let your children decorate the back seat however they want. Unfortunately, leases do not give you the same ownership flexibility as financing does.
To put it plainly, if you plan to keep a car long after you pay it off, then a lease is not for you; if you want ownership flexibility, then a lease is not for you; if you travel a lot then a lease probably isn’t for you either.
However, if you trade in vehicles often, you should consider leasing and if you want a fancy new car that you cannot afford to finance, leasing is another avenue for you to consider.
