Here’s the thing — cars are some of the biggest purchase decisions an average person could come across and there are a multitude of options to choose from, each with their respective advantages and clear disadvantages. These factors range all the way from ownership to sustainability, and every car buyer has different needs. So with this in mind, when is it more practical to get a car lease instead of buying a vehicle outright?
Well, first you need to look at the most important factor of all, and that’s your financial capability. Particularly, you need to look at your monthly cash flow in order to determine when you should head on to LeaseFetcher instead of buying the car outright.
The premise here is that car leases generally cost significantly less versus financing payment plans — assuming that both share the same loan terms. This is because when you finance a car, you’re paying for the entirety of the vehicle. Whereas with leasing, you’re simply paying for the depreciation costs of the car during your lease period.
Once again, money is a factor, but this time, you need to ascertain how much money you actually have that you’re willing to allot for a downpayment plus the initial fees of the transaction. Most lease contracts have low downpayments, and in some cases dealers even agree to waive the downpayment entirely. Furthermore, you’re going to pay less in terms of sales taxes when you lease versus when you loan.
Another factor that you need to consider is the frequency that you drive. Generally, if you drive on almost a daily basis, then you’re most likely going to reach the mileage limit of a lease, and even exceed it. In this instance, buying a car would be a much more practical approach. Another factor to consider is the intended use for the car. Is it intended for personal use or are you going to use the car for business? When you’re planning on using the car for business purposes, you can actually get the car’s depreciation and financing cost deducted from your taxes.
The way that you handle cars is also an important factor when you’re trying to determine whether you’re going to buy or lease a car. If you have a high tendency to get scratches on a car, a lease may be more detrimental for you financially as you will be charged for wear and tear fees.
On the other hand, if you buy a car, you are the sole proprietor of the car and as such, it’s nobody’s concern but yours what you do with your car — as long it doesn’t harm other people, of course.
The period you plan on using the car is also another factor that you should consider. If you intend to drive the car for a few years, then you’re going to want to lease, however, if you intend to re-lease the car, you should know that the fees are going to be significantly higher. In this case, you might want to just opt to buy out the car instead.
Check out these top 5 Benefits of Leasing your Next Car.