Should I lease or should I buy? This is a question pondered by most drivers at some point in their lives. The reality is that leasing does make perfect sense for some, and not so much for others. While it is nice to think of always being able to drive around in a new car, one must never forget they are talking about a car they will never technically own. The leased car will have to be turned in at the end of the lease and the process looking for another car will begin again, unless that car is purchased.
For anyone in the market for a car but isn’t sure if leasing is the right option, consider the points made below prior to making that final decision on whether to lease or to buy.
Do you need a new car right away?
Leasing may be the go to option for the person who is in a situation where they need a new car right away but don’t have the cash on hand for a large down payment. This could be the perfect option for a person with a family that needs to purchase a reliable car fast and can’t afford to buy that car. Another benefit of leasing a person can take advantage of is the option to purchase the car at the end of the lease, but be careful because this might not be the most cost effective sound option.
Do you prefer to drive only the latest models?
Some people just don’t like driving a car unless it is the latest model. For the person who can afford to, leasing is a great way to keep a new vehicle in the driveway. The flip side of that coin is that one will always have a car note to pay; there is never a day when the car is paid off and a celebration is made about having one less bill to pay every month. But if you can afford never ending car payments, leasing is definitely a great way to always be able to drive a newer car.
Do you own a business?
Another reason many people lease a vehicle is because they use it for business purposes and are therefore able to write off the cost on their taxes at the end of the year. If a person owns a business and uses that car to operate their business, it can be written off as an expense. The best thing to do for anyone considering this option is to contact their Accountant to get a detailed explanation of how a leased vehicle can be written off as an expense at tax time.
Anyone answering yes to one or more of the above questions may want to look into leasing a little bit further because it might be the perfect choice. And remember, leasing is always going to save a person more money up front, but in the long run, leasing will typically end up as the more expensive option.
At the end of the day, a person will have to look at their specific needs and determine if leasing is right for them.