Tip for Car Leasing vs. Purchase
Leasing accounts for fully one-third of all new vehicle acquisitions in the US these days. But is it right for you? There are, of course, many factors to consider in leasing vs. purchasing a new car or truck, but here are some general profiles of the types of consumers who tend to profit from each framework:
Purchasers stick with their vehicles for longer periods, like the idea of ownership and equity, can handle higher up-front monthly payments for the long-term advantages, are prepared to absorb post-warranty repairs, and may drive an above-average number of miles.
Leasers prefer a new vehicle (and the flexibility of choosing it) every 2-3 years, would rather make lower monthly payments over a longer stretch -- even if it costs more long-term, and drive a below-average number of miles.
If you're considering leasing a new car, here's a good, independent resource: LeaseGuide
Comments
For the most part, leasing a car just doesn't make sense from a financial perspective. Either does buying a car new. If you only drive a bit where a lease might look attractive, consider only renting a car when you need it or have a driving service. When you add in the expenses of insurance and everything else, these two options can end up being much less expensive for those who don't drive much.