The "one-size-fits-all" saying may be true in some instances, but choosing whether or not you want to buy or lease a car is certainly not one of them. Everyone's individual lives and situations are unique. Therefore, it's important to weigh your options, and make informed decisions based on what works best for you. That said, let's go over what to consider before deciding to buy or lease.
Finances
Finances are one of the biggest things to consider when looking at either buying or leasing a vehicle. Both can be considered affordable in different scenarios for different reasons. For example, if you're looking to finance a vehicle and eventually pay it off, this may be a better option for you. In fact, most people find that buying a vehicle is a more financially responsible long-term goal, as once it's paid off, you are free from your previous car payment obligations. However, not everyone is in a place where they can afford large upfront costs or take out a car loan. Some people simply desire a more short-term solution to their vehicle needs. This is where leasing may be the more affordable option. The great thing about leasing is that not only do you have lower monthly payments, but you also won't be required to put down a hefty down payment like you would if you were trying to purchase.
Maintenance
Vehicle maintenance is something that some people don't consider until after already having the vehicle, but it's definitely worth considering when choosing to either buy or lease. If purchasing, you will be responsible for the maintenance of your vehicle. This can get especially costly if you purchase an older model that has a significant number of miles. However, if you choose to lease, you will be looking at having lower maintenance costs and included maintenance packages. Most of these packages include your standard maintenance such as oil changes, tire rotations, etc. Even so, it's important to keep in mind that excessive wear and tear could result in additional fees.
Driving Habits
How much do you drive annually? Regardless of whether you are leasing or buying, you'll want to consider how many miles you're putting on your vehicle. Typically, leases have mileage limits placed in their agreements which if exceeded, result in more charges to the customer. However, if you choose to buy, your mileage is less of a concern until maintenance issues begin to occur.
Upgrading
If you're someone who prefers to drive a new car every couple of years, then leasing is going to be the best option for you. Typically, leasing contracts last anywhere between 2-4 years, allowing you to frequently upgrade without the long-term commitment. Allowing you access to the most recent, top-of-the-line makes and models. That said, if you're looking to keep your vehicle for a long time, or eventually looking to pay it off, then buying outright might be the way to go. One of the benefits of ownership is getting the opportunity to build equity. As you continue to make regular payments to your loan over time, you'll continue to build equity which will come in handy when you're ready to sell or trade later down the line.
