Depending on the kind of car you’re now driving and the amount of money you can afford to out down and also pay monthly leasing a new car may be a better option than buying a new car. It can sometimes put you in a more luxurious new car also for less than the payments that you would make on a car that would ultimately be yours. Below are 10 things to consider when contemplating leasing rather than buying your next car.
1) How long do you usually keep a car and is it intended as a work vehicle? The longer you keep a car the more reason to avoid leasing. If it’s a work vehicle the reasons for leasing increase as the tax benefits are better. If you like to drive the latest models and don’t drive excessively leasing may still be best for you.
2) Don’t put a down payment on a lease just to save money on the payments. Administrative fees are the only thing that you should pay up front.
3) Do some math to determine if you’ll spend more on the lease than if you were to buy the car outright. There are lots of ‘math helpers’ on the web to figure this out. Go online and research them.
4) Compare all the lease payments and up front charges and to purchasing a car before you make a decision.
5) Consider all terms, options and what you’ll be doing after the lease expires before you make you final decision. If the difference is slight but gets you the car you want then go for it.
6) Leasing a used car may be a much better deal than a new one and it will be lots less to insure.
7) Buying a car that you can actually afford is usually better than leasing a car, especially when you consider that, if you keep it in good shape and well maintained, you’ll get good money for it in trade on your next vehicle.
8) Figure out how many miles you’ll put on the car before you sign. If you are going to drive a lot and the dealer agrees to figure that into the total cost of the lease it may be a better deal than buying.
9) Let the lessor take the vehicle back at the end of the lease if the market value is less than the lease end value. If it’s the other way around consider buying the car if you still like it.
10) Remember that you can haggle with a lease as much as you can with a purchase.
Good luck and let the good times roll.