With so many different models and vehicles available, car manufacturers have been pushing leases hard. However, if you’ve been considering the purchase of a new car, you may have been debating whether you should lease or buy your next car.
Here are some essential questions you should ask yourself if you have been debating between a lease and purchasing a vehicle outright:
How Much Do You Drive?
Most leases have a clause that allows drivers to drive roughly 12,000 miles per year. This amounts to 1,000 miles per month or 32 miles per day. How far do you commute to work?
Do you drive well over 1,000/month? If so, leasing may not be the right option for you. Owning a car allows you the freedom to drive wherever and whenever you please.
Do You Get Small Dings and Dents?
When you are ready to return your lease, the dealership will require that the car is returned in like new condition, minus any regular “wear and tear”. If you scratch or ding your car often, you will be forced to pay for the repair costs.
Can You Make Monthly Payments?
Leasing can save you a boatload of money up front but can end up costing you big in the long run. This is because you will have to always be paying to have access to a car. If you buy a vehicle outright, you can continue to enjoy it after paying it off. This can save you thousands of dollars in the long term since money is always a future uncertainty.
Do You Customize Your Cars?
Owning your vehicle allows you the freedom to do as you please. You can change the paint colors, change the wheels, add a stereo system, and more. However, a lease cannot be customized and must be returned in original condition. If you do customize a leased vehicle, the dealer could come after you for repair costs.
Are You Using the Car for Business?
If you are leasing a car, a portion of the financing and depreciation costs can be deducted from your taxes. However, you cannot deduct the purchase price or financing price if you decide to buy a car.
All in all, you should make the decision that best fits your lifestyle. If you are attempting to save money in the short term, a lease may be the right option for you, Remember that almost all leases and financing options will require money down.
If you decided to buy a car and are in need of financing, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no obligation loan inquiry form today to get started.