Should I buy or should I lease? Although we often bring up the topic on CarNewsCafe, the debate is still raging. As the years go by, we are seeing a growing trend towards car leasing. So which one is right for you, buy or lease?
Making Sense of Buying Or Leasing A Car
We are happy to report that we have good news. Both outright buying and leasing have simple advantages and disadvantages. But understanding your needs and having a budget is the crucial first step to take in order to get the car you need at the right price. This article will help you do the preliminary work.
Buying a new car is a great time in anyone’s life. It is exciting and the incredible choice today can be overwhelming. Which car to get, where? What financing is available? Which dealership has the best reputation, and which one will give me the best price. So let’s start at the beginning. What is your yearly mileage? How often do you go for a maintenance and tune up? How much does it cost? What is your current fuel consumption and budget? What is your insurance bill like? Those basic three steps will give you a good foundation for your commuting budget and let you determine your best car choice.
The Pros And Cons Of Buying A New Car
Buying a car has many obvious benefits. You can choose from many options, budget permitting. The choice of color, tinted windows, infotainment, connectivity, and amenities run the gamut. Once you have chosen, you can be sure you will have the car you specified, even tailored to your specific needs.
Another less tangible benefit is that of pride of ownership. Come on, admit it. Doesn’t it feel good to buy your very own new car? Well, that is until you leave the dealership. We often read comments about whether or not people really got what they originally came for? Did that salesman sell me more than I needed? Unfortunately many new car buyers walk off the dealership lots with more questions than answers. To make things worse, they start to face the never ending maintenance cycle. Did I ask the right questions? How often do I need to bring it in?
While the pros are obvious, the cons are hiding in the details. Besides the aforementioned maintenance cycle, repairs, and upgrades, something we rarely consider when buying new is that most cars lose up to half of their value the first three years. The biggest chunk of depreciation happens the first year. This can make it difficult when it comes time to resell and buy that newer car you are ready to own.
The Pros And Cons Of Leasing A Car
On the other hand, car leasing is increasingly becoming an affordable way to drive a brand new car every other few years. Leasing a car today also means you can have a brand new factory car with its obvious advantages. Instead of outright buying that brand new car, you can just lease it. This is particularly attractive if you are on a tight budget.
Today you can specify the car of your dreams, new and used for a fraction of the price of buying one. You can also customize that car to your specific requirements and needs. One of the feature that scares away most shoppers from leasing is that of mileage allowance. If you have done your homework well, you should have a good idea of your yearly miles and budget. This will help you find the right leasing option and package allowance for your particular needs. One of the single biggest benefit to car leasing is that it will include the dreaded car maintenance and servicing. Some car leasing companies also offer insurance, protection, and much more.
Another question we often get is what if you absolutely love the car you are currently leasing and can’t stand the thought of letting it go? You’re in luck since leasing gives you the possibility of purchasing the car.
Here is our personal ideal solution. We obviously love cars at CarNewsCafe. It makes the most sense for us to buy older collectible cars we keep for weekend getaways while leasing new ones for our daily commute. New cars are perfect for that and leave us weekends to enjoy our favorite projects, garage toys, or simply roam around town with our oldies.
Ultimately, car leasing has one very unbeatable advantage that can’t be neglected. You get to drive a new car every few other years. This gives you enough freedom to keep on top of what is new and constantly around the corner for next season. It is definitely the most affordable way of keeping up with the Joneses.
Leasing Versus Buying, Choosing What Is Right For You
Although no one solution fits all, leasing allows you a certain amount of freedom of choice. There are plenty of great special offers on personal lease cars that help you maneuver the intricacies of car leasing. A quick scan on their search features yields the many cars available. For instance we were looking for a fun zippy European car for clients of ours relocating to the United Kingdom. Our search yielded a Seat Ibiza Sport Coupe for under 140 British Pounds a month. The search feature allowed us to fine tune the results, including changing the size, length of contract, money down, etc.
Buying Versus Leasing, Final Thoughts
The question you need to ask yourself before committing to a new car is whether or not you are the kind of person who hangs on to them until they run down. If you do, buying a car outright might be a good solution, but don’t neglect car leasing, which can save you money in the long run. And hey, you might even try your luck by looking for that elusive BMW M2 GTS we’re all dying to take a spin with.
Leasing a personal car is increasingly meeting the demands of our modern everyday life. We move around, relocate, change, families grow, and whether you are financing your first car, or need a more practical vehicle, car leasing is becoming more and more popular.
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- 2017 Guide to Buying vs Leasing a Car - December 15, 2016