Leasing makes the most sense for those who answer “yes” to one or more of these questions.
- Do you typically get a new vehicle every 3 to 4 years?
- Do like to replace your cars periodically to have the latest safety, performance, entertainment and communication technology?
- Do you use your car importantly for business? (Your accountant may advise you to lease.)
- Is your family size or climate location likely to change in the next few years?
- Do you need to minimize your monthly car payments to fit your budget?
- Do you drive 15,000 miles a year or less?
- Do you always want to be covered by the automaker’s initial warranty?
Buying makes the most sense for those who answer “yes” to one or more of these.
- Do you typically keep your cars for 5 years or more?
- Do you want to get the maximum value for every transportation dollar you spend?
- Do you drive significantly more than 15,000 miles a year?
- Can you pay off your car loan in 5 years or less?
Leasing is a good option for many people. But it will never be the most cost-effective way to get around.
If you lease a new car forever, you’ll be making car payments forever. And you’ll always be paying for the most expensive depreciation years.
The way to get the most value for every new-vehicle dollar you spend is to buy a reliable car and drive it for several more years. Making an expensive repair periodically is usually a lot cheaper than buying two or more cars over the same period.
To learn more about leasing, read Leasing 101, a detailed description of the key leasing subjects, written in ordinary, everyday English:
The Legalese About Who Does What
What You’re Paying For
What You Can And Can’t Negotiate
How They Calculate Your Monthly Payment
What’s In a Typical Drive-Off Check?
Who Offers the Best Leases?
Will Automakers’ Captive Finance Companies
Deal On The Buyout Price at Lease-end?
How You’ll Negotiate The Best
Lease Deal In Your Market