Deciding whether you should lease or buy your next vehicle can be difficult. There are advantages and disadvantages to both options.
So, what should you consider when making this important decision?
The experts at Consumer Reports offer guidelines to help you choose the option that works best for you.
When it comes to leasing, the monthly lease payment is usually lower than what it would cost to purchase the same vehicle because the monthly lease payment only involves paying for the difference between the value of the car when new and the expected value of the vehicle at the end of the lease.
Another benefit of leasing is that the low monthly payment makes it possible for you to afford to drive a late-model vehicle that is new and under warranty.
However, when you lease a vehicle, you need to make sure that you don't exceed the mileage you paid for. You also need to make sure that you don't have any excess wear and tear on the vehicle when you turn it in at the end of the lease.
And, if you want to turn your vehicle in early, it's likely going to result in significant penalties and early termination fees.
Now, when it comes to purchasing instead of leasing a vehicle, you might have a heftier monthly payment, but you will actually own your car at the end of your loan.
Also, buying allows you to avoid the continuous monthly car payment cycle that you have when you are always leasing.
Leasing and buying both have advantages and disadvantages. Your choice depends on what works best for you and your specific circumstances.
So, that's advice from the experts.
Which one will you choose when you get your next new vehicle? Will you lease or buy?
Until next time, stay safe and be careful out there.