Buying Vs. Leasing: Which One Is Right For You?

Happy young man behind the wheel of new car in auto dealership.

It’s no secret vehicles are a substantial investment. Although, they’re far worth your hard-earned cash, as they protect you on your travels, get you from point A to point B, and even allow for a space to chill from time to time. When car shopping, the easy part is usually picking out your ride, as you’re mesmerized by the various performance features, deluxe cabins, and high-technology updates. Once you have found a vehicle you love, the next step is deciding where you are going to lease or buy it. While you cannot go wrong, depending on your long-term plan for the vehicle, as well as your current financial state, there is a choice better fit for you.

Why Lease

If you are unfamiliar with leasing, think of it as a long-term rental. You don’t obtain ownership of the vehicle, but you are able to enjoy the benefits of driving the vehicle without fronting the full price. Most lease terms are a couple of years, and once your rental period is up, there is no hassle of selling the vehicle, as you don’t own it. Many drivers choose to lease because they plan to purchase a new vehicle every couple of years, and the monthly payment is more affordable than if they were financing. Also, you don’t have to pay sales tax on the vehicle, as you are not purchasing it, which is a substantial amount of savings. At the end of your lease, all you have to do is return it to the dealership, and after, you can treat yourself to a new vehicle to lease.

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Why Buy

If your goal is to eventually no longer have a car payment, and you see yourself keeping the vehicle for the long haul, buying may be a better option for you. Not to forget, the credit booster buying a vehicle offers, as making on-time, monthly payments is sure to increase your score. If you plan to be married to the vehicle, as well as treat yourself to customizations, buying the vehicle is the way to go.