Vehicles don't last forever, so you'll eventually be in the market to replace the car you currently have. But should you buy or lease? Owning a vehicle is an expensive proposition no matter how you look at it, but does it make sense to sometimes lease? Or is buying always best for your wallet? Unfortunately, there isn't a simple answer, but if you take a look at your situation you'll be able to decide if it's better to buy or lease.
Should You Lease or Buy Your Next Car?
From Jeremy Vohwinkle, About.com GuideDecember 29, 2010
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I think this is pretty basic standard knowledge. What would have been helpful is to explain how depreciation is factored into the lease cost, how car insurance increases how much you are ‘really’ paying for a car, how much the upfront cost plays in and how long you drive it. If I buy a car I have to only maintain verses fix, owning can be a huge benefit because I don’t pay for depreciation and I don’t have to have full coverage insurance. However, leasing a car is a great option if I’m using it for business or want an ‘almost’ guaranteed reliable car.
Personally, owning or leasing depends on usage of the car, road miles verses family trips/around town and how it’s being used… kids, work, leisure.
Honestly, give me a reason to read your articles. Don’t tell me what I already know.
Kara, whether you own a car or lease it you will pay for depreciation whether it is the residual or the trade in value they are both based of the same thing what the car is worth when you trade it or the lease is up. The biggest thing is that when a lease is up you actually have to come out of pocket the difference, but in a trade it is just floated into the price of the new car. It maybe a smarter move to some to lease, especially if the trade every 2-4 years. Also most leases stay under the factory warraty so you should never have to fix a car just maintain it, unless you wreck it and which thats what the insurance is for.
BUY – then drive it till it drops……..
I agree with LA…buy it and drive it til you and the car give up on each other..