Buying VS Leasing

How to Decide Whether Leasing or Buying a Car is Best for You

At the point When you rent a vehicle, you are essentially leasing it from the seller for a specific time allotment. That is normally a day and a half four years. When your rent period closes, you have the choice of returning the vehicle to the vendor or buying it at a pre-decided sum, which is characterized in the rent contract.

There are no set rules. For some leasing is the answer, for others, they would never touch a lease. The difference between the two is as much a difference in consumer preference as it is in what each can offer you.

Here are some ways for you to check and see which is better for you:

How much can you pay on a monthly premium?

It’s cheaper in the short term to lease a car. While this number is not often a vast percentage, it often is a matter of $50.00, which to some can be a make or break part of a decision.

How much can you put down?

What do you have to contribute right now to a sale or lease of a car? If you have a car now, that can be a down payment on a new one. Leases often don’t require down payments, or they’re very small if they do.

How much do you drive?

If the answer is a lot, don’t lease. Leasing a car will give you a set amount of miles per year. If you exceed the total at the end of the lease, you will pay a high penalty for exceeding the miles agreed to in the lease.

How hard do you drive?

Are you taking in a movie at the local cineplex or rushing down rutted country roads as fast as you can get there? Wear and tear on a car is normal, hard driving is not and will also incur a penalty if you lease.

Planning on starting an Uber?

Or are you going to use the car for hauling your samples around? Most leases will specify that you’re not allowed to use the vehicle for commercial pursuits 

Are you going to be able to hand the car back?

If you do, then what? At the end of the lease, at best, you have no more payments to make. Unless there are fees for overages or damage, you’re simply not making more payments. But on the other hand, you no longer have a car. If you’re going to need one, it might be better to buy and use that for a trade‐in.

Find out the full price of the car, that is, calculate cost plus interest plus time on the payments. Find out the cost, and then plan ahead, see yourself in five years, ten years. Will your life be different? How? Plan accordingly.

If you need more information from an Auto Advisor, WyzeDryver provides real time auto advise. Go to www.wyzedryver.com for more information