Lease or Buy?
Lease or Buy
Deciding whether to buy or lease a new vehicle can be a daunting task, but it really depends on your lifestyle. A lease may be ideal for someone self-employed, who can write off the cost. Some people may like the fact that a lease allows you to drive luxury vehicles at a lower cost or choose a new vehicle every three years. Alternatively, if you plan to drive your vehicle for several years, it may pay off for you to buy. Take our quick assessment to determine whether leasing or buying is best for you.
Lease or Buy Assessment
How long do I usually keep a car?
Under 3 years
- If driving new model cars is important to you, consider leasing since most leases are for 3 years or less.
Over 3 years
- Consider buying since most leases are for 3 years or less.
How many miles do I usually drive?
Under 15,000 miles per year
- If you drive less than 15,000 miles per year leasing can make a lot of sense.
Over 15,000 miles per year
- If you drive over 15,000 miles per year then buying may make sense because most leases have excess mileage charges above 12,000 or 15,000 miles per year.
How much cash do I plan to put down?
As little as possible
- Leases often require little or no money down. This might be the best way to get into the car of your dreams.
I can afford to put several hundred down if needed
- That’s good because most financing options require a down payment. Remember the larger the amount you can put down, the less you will pay in interest!