We all need to get a new car every so often. As much as we wish they would, they just don’t last forever. The older they get, the more problems they seem to have. This begins to cost more and more to fix, with multiple trips to the garage, and one day you decide you’ve had enough. But should you buy a new car or lease one? Both have their own advantages and disadvantages that you need to think about. This guide will help you to make your mind up:
When you lease a car, you’re paying for the depreciation of the car rather than the full cost of the vehicle. If you were going to use financing as a way to buy a new car, then leasing could be more favourable as the monthly payments will likely be much lower.
However, if you do use finance to purchase your car, you will own the car when you’ve finished paying it off. You can then sell it or do with it whatever you please.
It might not be worth leasing a car if you do a lot of miles. There are nearly always conditions when it comes to the amount of miles you do in your car. You’ll usually need to agree to do no more than 10,000 miles in the car, maybe 15,000 if you’re lucky. For every extra mile you do you’ll need to pay. This could mean you have to pay thousands more. If you look at cars for sale in Montgomery Alabama, you’ll see that you don’t need to limit the amount of miles you do when you buy.
How Careful are you with Cars?
If you’re very good with your cars, then leasing could be for you. However, if you’re prone to getting scratches and bumps here and there, you might want to think twice. There are usually ‘wear and tear’ fees you need to pay if you’re returning the car in anything less than pristine condition. However, the fees are usually limited to about 3 months lease payments, so you won’t need to pay that much extra. Consider whether you’d be willing to do this or not.
How Long Will You keep the Car?
If you want to keep your car for a long time, buying is definitely the best option. If you like to switch your car every few years, leasing is for you. The longer you keep a car, the more money you save when you buy it. If you do lease the car so you can switch it up more often, you’ll still need to make sure that you can stick to your lease terms and don’t try to swap the car beforehand. You’ll need to pay thousands extra if you do try to swap the car too early!
Hopefully, this guide will have helped you to make your mind up and decide which the best option is for you. Thanks for reading!