Should you buy or lease your next car?
Arguments for leasing. Some drivers feel more comfortable leasing a car. They know they’ll have the car for three years. After that, they can turn the car in and it will be somebody else’s problem.
Often, leasing a car will require a lower down payment and lower monthly payments. Thus, you can drive a better car for less money each month. You also may have lower repair costs because a factory warranty will cover most repairs, under a three-year lease. At the end of the lease, you can skip the trade-in hassles.
On the buy side. Other drivers prefer to buy the car and keep driving it, as long as it makes financial sense to keep it running. Buying a car tends to be more economical in the long run and today’s low interest rates can make buying a car over time more attractive, especially when “zero percent financing” is offered. Besides, when you own a car you have more flexibility–you can sell the car whenever you want.
Either way, you should negotiate the best cash price on a vehicle. Don’t even bring up the subject of leasing until you have that number. Then you can ask about leasing and compare the results. Often, you’ll find that buying makes more financial sense unless a special leasing deal is being offered.
