Lease or Purchase. The options.
Because you are commiting to a major purchase of a car or truck and are spending some of your hard earned money, it only makes sense to consider a few points before signing on the dotted line for your new vehicle.
Generally speaking, for most drivers, buying or leasing a vehicle can best be summed up as follows. When all costs are taken into consideration, it is less costly to buy a car or truck you'll one day own compared to leasing a vehicle which you won't!
We suggest you decide on the make and model of the vehicle you will be buying or leasing and compare outright purchase, borrowing and leasing costs. Then decide what is best for you before stepping into the Dealership showroom.
Check the following lists to help you decide which is the right move for you.
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Advantages to Leasing |
Disadvantages to Leasing |
- Low downpayment required
- Lower monthly payments
- New model every 2-3 years
- Low repair and maintenance
costs during Factory Warranty
period
- No Trade in hassles - return
vehicle at end of lease
- Possible Tax advantages
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- No Equity build-up
- Kilometers limited during lease
term - additional charges
- Responsible for repairs and any
damages to vehicle during term
- Not easy to terminate lease if
finances or lifestyle changes
- Overall, more costly
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Advantages to Buying |
Disadvantages to Buying |
- Very flexible: sell or trade
vehicle at any time
- No limit on kilometers
- Building equity
- Some of capital outlay can be
returned in a few years
- With proper care, vehicle can
be driven for years after
payments have been completed
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- Higher monthly payments
- Responsible for repairs when
factory warranty expires
- Need to sell vehicle when time
for next car
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Generally speaking buying is the right choice for most people due to the cost considerations. However, if you are in business or the type of work requiring transportation of clients for instance, then leasing may be the right move for you because of tax deductions that come into play.
Other useful Lease Links
www.autobytel.com
www.dealernet.com
www.auto-advisor.com/lease.html
www.leasebusters.com/
As always, we at womensgarage.com welcome questions and comments.
Please e-mail us if we can help
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