Lease Vs. Buy
There are lots of great deals out there when it comes to leasing or purchasing a car. When deciding on whether to lease or purchase, it all depends on what drives you. Is it a lower payment? The need to have a new car every 2 years? No matter what you are after, take a look at the checklist below to help make your decision.
I need the lowest payment possible to fit my budget
Payments are higher because your balance is larger. You are paying for the price of the car + interest. Sometimes sales tax and finance charges are also included in your loan balance.
Since you are paying for the depreciation of the car’s value the payments are almost always lower
I want to own the car after making payments
Once you have finished with your last payment, the car is all yours!
The car must be returned at the end of the lease period unless you negotiate with the dealer at the end of your lease term and purchase the vehicle.
I don’t want any restrictions
When you buy a car you don’t have to worry about excessive mileage, making customizations or other normal wear issues that happen over time.
With a lease, adding customization like window tint is tricky and there is usually a set amount of miles you can travel during the term of your lease. If you exceed that limit you may have to pay extra at the end of your lease.
I don’t have much for a down payment
When buying, depending on the financial institution you may have to have some type of down payment. You may also need extra funds for taxes and getting the vehicle registered.
With a lease, it depends on the deal. Make sure to read the fine print. Typically leases require a security deposit, first month payment, down payment, taxes and fees for registration.
In the end, it is ultimately up to you to weigh the pros and cons of leasing vs. buying before making a decision. Determine your needs and decide which is right for your financial journey. CoreFirst is always ready to help with solutions for your financial objectives.