When your old car is starting to get expensive with repairs and maintenance, it is time to consider a new one. Most people go right to the dealer and look at cars to buy. However, leasing is also a good option in some circumstances. Since there are no black and white answers, which scenario works best is a matter of your personal needs and situation.
You’ll need to make an evaluation before you decide to lease a car or to buy one outright. If you’re having a tough time deciding then this article will give you some of the things it takes to make a decision.
When buying
The most obvious advantage when it comes to buying a car over leasing one is that at a certain point you will own it and not the bank. After five or six years you will be done with your payments and then the car is yours. Unfortunately, around the time you pay off the car is when most warranties finish and you are on the hook for repairs and maintenance that starts happening frequently once your warranty is over.
Luckily, you can buy an extended warranty for cars over 100k miles so you aren’t paying for repairs once you finish paying off the loan. So, there are ways to minimize how much your older car is going to cost you. If you fear having to make repairs often and have the car in the shop all the time, then leasing is a good option.
Another thing to consider is how you plan to use the car. Leasing often has mileage limits so you will pay more if you go over the limit. You can end up paying as much as 25 cents per mile over the limit. If you have a long commute or live out in the country where you have to drive for everything then leasing is not a good option.
Lastly, you are free to do whatever you want to the car. You can modify it to your heart’s content even when making payments to the bank. If you want to paint it, add some modifications or anything else, you are free to do so. With a leased car, you have to bring it back as you found it and can’t make these types of changes.
When leasing
It’s nice to always have a new car. When you lease, you can drive a brand new car every two to three years. If you love that new car smell then leasing is a good option for you. You also get to try out a lot of different makes and models. If you drive one for a while that you aren’t crazy about, then you aren’t stuck with it for years.
Repairs are also not an issue for most leased cars. You are always under a warranty and usually will be returning the car before many common repairs are even necessary. If there is a problem then it is almost always covered in your warranty. Many lease options also include routine maintenance like oil changes and tire rotation for free.
