The choice to lease or buy your car may seem like an obvious one. Unfortunately the answer that is obvious to you might be the opposite of someone else’s choice. There is a serious possibility that if you sit down and work it out, You might get an interesting surprise. Leasing or owning your automobile gives options that might be good for you in ways that you had not considered.
The Decision To Lease Or Buy Your Car
When you buy your own car whether it is a cash payment or through an auto loan, the only obligation you have remaining is to pay of the loan. The car belongs to you at the end of the day.
When you lease a car you are going to pay less as a down payment and as a monthly payment. However, at the end of the term, ownership of the car goes back to the dealership or the leasing company.
Their number one concern at the end of the lease is that they can sell the car on once you return it. To do so they have strict limits on the miles driven and the condition of the bodywork and interior, as returned. Any damage or excess mileage will be charged to you at the time of return.
The Value Is In What You Value
In the long run, owning your own car is less expensive if you hold onto your car for the long term. On the other hand, if you trade in for a new model every three years or so, you will get better value from a lease. There are exceptions to this rule as leases have limits on the mileage you can drive each year without penalty.
Having a new car every three years can be smart. The manufacturers warranty will cover most mechanical breakdowns. To get the most out of your purchased pride you will have to run it long after the warranty has expired. That may not matter to you but, as cars age, wear and tear will cause breakdowns to become increasingly likely.
Ultimately, the pride of owning your own car must be balanced against the pride of driving a new car.
Can You Anticipate Your Next Three Years?
Miles and miles into a lease you may find that the great job you never expected came up, half way across the state. You immediately begin driving four times the number of miles you expected each year, just to satisfy your career ambition. The mileage limit on leases means that your overage will be charged to you at the end of your lease, by the mile.
This might be all well and good if you earn significantly more in the new job than that on which you based your budget when you decided to lease. However, if it is a job that does not pay better but will look great on your resume down the road, it might turn out to be much cheaper in your own car.
The question of whether you lease or buy your car comes down to your personal situation. Either case can sometimes be significantly better depending on the things you value and the miles you drive.