Getting a new vehicle is always a bit challenging. Sure, you can always go and get a used one, but what if you want to get the latest, top-notch car? Then, you have some serious thinking to do. Obviously, you have to choose between either purchasing or leasing.
Nevertheless, making this choice is a complex task. After all, there are many things you have to consider, even if it doesn’t seem that way. In the following article, we will help you make this decision by providing you with some answers.
Table of Contents
How long do you plan on having it?
Many people would argue that finances are the only thing you have to take into consideration when making this decision, but it is not quite true. You also have to think about how long you want to keep that vehicle. If you want to get a new one as soon as it hits the market with all of its shiny new features, you should probably lease one right now.
On the other hand, if you want to invest in a vehicle that you will drive for many years to come, or until you need to get a new one, you can proceed with the process of buying it.
How often do you drive?
This may seem to be an odd question, but it actually is an important one that will help you decide whether you should lease a vehicle or not. Depending on the city you live in, you may use public transportation or ride a bike to work. You may be only thinking about getting a car for long drives and road trips. If this is the case, you should probably go with leasing. If this is the reason you are considering leasing, check out Leapehicleleasing.com to learn what your options are.
However, if you need a vehicle for everyday commuting, picking up kids from school, running errands, and so on, buying a new car is the right choice for you. The thing is that leases always include a mileage limit. Naturally, this differs between companies, but the truth is that if you exceed this limit, you will greatly increase your monthly payment. It may just not be worth the investment at the end of the day.
Will you make some life changes?
Once again, you are probably wondering how this can be related to the choice of whether you should get a new car. Well, let us provide you with an example. If you like sports cars but are thinking about having kids in the foreseeable future, you have to admit that it is not a very practical choice, right?
When purchasing a new car, you are expected to drive it for many, many years to come. If you want to get a car that is not very family-friendly, you should lease it and drive it for a few years.
What will the monthly payment be?
Now, we have reached the financial matter. You can think about it this way. Would you be more comfortable with a lower monthly fee that you will have to pay off during a longer period of time, or do you want to pay higher fees? This is the main difference between these two options.
Monthly leasing payments are always lower than the auto loan ones, so they will enable you to maintain your budget successfully. Still, you have to remember that once you are done with these payments, your lease will be up, meaning that you will probably have to sign a new contract instead of having full ownership of the vehicle.
On the contrary, when purchasing a new car, you will first have to invest in a down payment that can be anywhere between 10% and 20% of the overall value. Then, the monthly fee will depend on the loan you get, which will be determined by your credit score. Due to this reason, if you cannot make this decision from the financial point of view, you should do some research, understand that auto loan you can get based on your credit rates, and then consider which option is more suitable for you in the long run.
Are you prone to hits and bumps?
Obviously, this question is related to future damages and repairs. In either case, you will have to pay for at least some portion of the overall cost. When it comes to leasing, the contract is usually signed for three years, and during this time, the car will probably be under warranty. Still, depending on the contract you sign, you still may have to pay for wears and tears as well as maintenance.
Nevertheless, as a vehicle your own gets older, the cost of repairs will also increase. This is why people oftentimes decide to invest in a new car instead of repairing the one they already own. However, once you pay it off, you can put the money that usually went for monthly payments into a maintenance budget.
Are you ready to commit?
Getting a new car is always a commitment, especially if you want to buy a completely new one. This is when you should think about whether you are ready to make this commitment. As already mentioned, when you sign a lease, the car will be yours for about three years. After this period expires, you can choose to return it and get a new one. We have already mentioned some situations in which this option can be quite beneficial.
On the other note, if you have found the perfect car that meets all your requirements, the current and future ones, and you can get a great deal and loan, you should go with it. It will be the newest addition to your family, and you will have the freedom to customize it according to your liking. This is an important feature to some people, and as you know, it is not an option if you choose to lease it.
To sum up, these are only some of the questions you should ask yourself before making this decision. There are numerous pros and cons to both buying and leasing, so you should thoroughly consider each one of these to be certain that you have made the right decision.