Your Next Car: Buy or Lease?

Other

Your Next Car: Buy or Lease?

Believe it or not, 2019 models are going to be rolling into dealerships any day now. Thinking about upgrading? Here are some things to think about when you're on the hunt for a new whip.  

Pros of leasing:

1. Small or no down payment

2. Lower monthly payments

3. A warranty for the life of the lease

4. Driving more car than you could afford to buy

5. Brand-new car every 2-5 years

6. You pay for only a portion of the vehicle's cost

 

Cons of leasing:

1. Limited mileage

2. You’ll never actually own the car

3. Permanent monthly payment

4. Penalties for turning the car in early, undue wear and tear, going over the pre-specified mileage limit

 

Pros of buying:

1. One day, it’ll be yours, all yours

2. No limit to mileage

3. End to payments

4. Lower auto insurance cost

 

Cons of buying:

1. Long-term cost of buying a car is less than leasing

2. A portion of every payment you make is lost to depreciation

3. Some type of down payment is probably necessary 

4. You pay for the entire cost of a vehicle, regardless of how many miles you drive

 

PRO TIP: If you are looking to make a deal, autotrader.com recommends buying at the end of the day, end of the month, end of the quarter, or end of the year. Also, some end periods are even better than others; "Buying a car at the end of the month in March, June, September or December often leads to even better deals than buying at the end of the month, as dealerships are trying even harder to reach sales goals."

Happy shopping!!