Should You Purchase Or Lease A New Car?

Traditionally when in the market for a new vehicle, most people if asked would prefer to purchase their new vehicle rather than lease. Well, there are pros and cons to leasing a new car. Lets start with the pros! First of all, when you finance a new vehicle, you are financing the whole enchilada. Unlike a lease, you are basically financing only a portion of the car, this can be advantageous to a person that may not be in a position to make a big monthly payment. Another thing you want to remember is, when leasing a new car you won't end up paying all your taxes up front, you pay them on a monthly bases with your payment. Some people prefer to lease, they may have a business where they can write a portion of the vehicle off on there taxes, and some just enjoy driving a new car and having the security of being able to just get in and drive away. This also can be a factor when considering a lease, you as the consumer will probably never endure any kind of major maintenance expenses, and with the average lease being about two years, you will probably never have to replace other items such as, tires, batteries, ect.. Plus with some of the lease programs that are available, this can make it quite inviting to the consumer.

Now the cons, you will never own the vehicle out right, unless you decide to keep it and renegotiate your payment. A few other things, you always have a payment, you will need to carry a little more insurance when leasing, and your limited to the amount of miles you can drive each year. Generaly, the amount of miles you can drive per year average from ten to fifteen thousand miles per year, depending on the vehicle. But, the flip side to that is the average person keeps a car for only five years.

Alright, there are people that love to keep a car until it dies. You know who I'm talking about; you may even be one yourself. Not that there is anything wrong with this. Some people just don't want that extra payment every month. The only down fall to this is you will encounter a major maintenance expense at some point, and will have to replace those other items that we spoke about earlier. Ok, it's not meant for everyone. So, if you decide to lease your new vehicle, just remember a lease can be negotiated just as a purchase can. One last thing I want to leave you with, never lease a used car, you get much better rates on a new vehicle. I hope this has been helpful to you.