Should I Lease or Buy my next Car
When approaching a new vehicle the finance involved can be somewhat confusing, and trying to figure out which financial approach is best for your needs requires research and information. In the world of inventive finance companies where there are promises of small and even zero down payments it can at times appear confusing. Inform yourself to help make the right decision on your next vehicle purchase.
Should I lease a New Car
Leasing is ideal for you if you put limited miles on your car, you are able to write it off as a business expense and/or you like to have new car every few years. However if you don’t fit into these categories you may want to rethink the idea of leasing.
Firstly; if you are considering a lease just for reduced monthly payments, then the vehicle you are looking at may just be out of your price bracket and you should probably consider something cheaper.
With leasing comes restrictions and contract specifications. The agreements usually includes limited mileage on the vehicle, sometimes as low a 10,000 miles per year and there is also usually penalties for terminating the lease early and rules pertaining to the upkeep of the vehicle. Sometimes leasing have restrictions on what you can do with your car and how you can use it. For example taxi or uber use is sometimes and option when leasing a car.
Be careful to read the fine print and make sure you shop around to get the best deal. Online sites such as InstaAuto.com are able to help you compare options before taking out a lease.
Leasing with the intent of buying is also something to be considered, however you should pay close attention before signing lease. Always check the optional purchase price or residual value that is stated on the lease as well as any additional fees outside the lease rate.
How about paying cash for a new car rather than leasing
When buying a vehicle there are a larger number of factors that you need to consider and things you can personally do to help yourself in the long run.
First and foremost you should establish the amount which you are able to spend on a vehicle, making sure this also includes taxes, title and registration. It is often worth calculating how much you can afford to borrow and then seeing which vehicles fit this price bracket, rather than deciding on a car first and stretching yourself financially to be able to afford it.
Financing options can be found through a dealership or the manufacturer, as well as outside sources such as a credit union or bank, so make sure you shop around to get the best possible deal for yourself. There is constant competition so lenders are always offering incentives such as cash rebates or zero percent financing as well as lower rates for an automatic electronic loan payments or direct deposit. It is well worth doing everything you can to reduce your loan rate and take advantage of these incentives.
Again shop arounds as different lenders have different interest rates, downpayments and other terms and conditions. There is also the benefit that you can sell the car when you want, and usually with most loans you are the owner of the car at the end of the loan.