When is Leasing a Car the Right Option?
Whether your trusty steed on four wheels has chugged its last sip of fuel or you just want an upgrade on your current ride, it’s time to start contemplating a new vehicle. While buying is often the go to choice, there are plenty of situations when leasing is the better option. Depending on the length of time you plan to own the car, how much you’re going to use it and your commitment to maintenance, leasing can be more affordable and efficient.
Initial Costs: Oftentimes, the question of leasing vs. buying comes down to the cash you have available. While both leasing and buying usually involve a down payment, a lease agreement down payment will be less and/or you could be allowed to skip it entirely
Monthly Costs: On average, a lease will be less per month because you’re not paying for the total cost of the car. Instead, your monthly lease amount is based on the use and depreciation of that car for the time that you have it. If you know that the difference in monthly costs will affect your bottom line, leasing can be a good decision.
Mileage and Use: While leasing can be a great option for those who want to save money on monthly payments and not have as many concerns with maintaining an older car, there is one area where leasing tends to fall behind buying: mileage and usage. Because lease agreements stipulate how many miles you can drive in a year (usually $10,000-$15,000 with a higher cost associated with higher mileage), if you drive more than this, you could end up paying more than if you bought the car. Each mile over your allotted amount could be anywhere from $0.10 to $0.20, or about $200 for every 1,000 miles you go over.
If you plan to use the vehicle on rough terrain or for work where you are more likely to get dings and scratches, and/or the interior will be affected, leasing may also be a problem. These small imperfections might not be a big deal to you if the car is yours permanently, but your dealership will need to charge you to have them repaired before you can turn the car in. In short, a lease is only a good option if you don’t plan to drive excessively and are quite gentle with your cars. Otherwise, buying may be the answer.
Wear and Tear: Those who are champions of buying over leasing will cite the fact that you will have nothing to show for your lease payments when you turn your car in. However, this doesn’t take into consideration the costs and frustration associated with repairs on an older vehicle. Yes, the total cost may still be less than leasing, but the peace of mind that comes with having a newer and more reliable vehicle can’t be underestimated.
At Lebanon Chrysler Dodge Jeep Ram dealership, we help clients find the best leasing and buying financing options to suit their needs and budget. For a great deal on new and pre-owned vehicles, visit us or call 513-409-2612.