As you consider picking out your next set of wheels, it’s likely that you have also mulled over your different car-acquiring options. Essentially, three of them exist – lease, finance, or buy outright. The third option is not one available to most American car shoppers, and unless you recently won big on The Price is Right, you will most likely be limited to either leasing or financing your next new car. Exciting stuff, right? Okay, it may not be as thrilling as test driving different models and calculating in your head how much extra it would cost to deep tint the windows and add Apple CarPlay – but it’s exciting nonetheless.
Car Shopping – How Will YOU Get the Keys?
To lease, or not to lease? To finance, or not to finance? These are the kinds of decisions that keep us up at night, and give us pause as soon as we feel confident in one option over the other. The fact is, leasing versus buying presents two very different options, with two very different sets of pros and cons. Before you RUN to your local car dealership and pick an avenue at random, take a second to pause and ask yourself – What do I need out of my car?
Lease it if…
- …You plan to stay local. Leases offer great value and can end up saving you some dough, but only if you keep that old odometer to a minimum. Leases come with a maximum annual mileage allowance, so before you start planning your cross-country road trip, take this into consideration.
- …You like new cars (and you cannot lie). I couldn’t resist. But seriously, if you always want to drive the newest and best car on the road, I urge you to lease. It’s the only way to ensure you aren’t throwing your cash out the window as you update your shiny set of wheels every few years.
- …You have a low budget, but big expectations. A lease will typically have lower monthly payments than a vehicle you finance through the dealership. Leases also require a lower down payment, if they require a down payment at all. That means lower monthly payments, and more bells and whistles. Sounds good – right? Leases are great for economy cars, but taking out a lease on a luxury car from a brand like Volvo can also prove affordable. Explore your options before you decide.
Finance It If…
- …You want to drive it into the ground. Your car, that is. If you are the car owner who loves boasting about how many miles you clocked before your beloved car bit the dust – financing or buying outright is your cup of tea.
- …You love taking road trips. Your family gets a kick out of cross-country road trips dotted with interesting pit stops and historical sites. A lease limits your number of allotted miles each year, but as a car owner, it’s your right to kick that odometer into high gear and put some real miles on your ride.
- …You like to customize your ride. When you own a car, you can do with it what you please. Want to add that mammoth-sized subwoofer to the trunk? Go for it! Install undermount lighting? Absolutely! Have the itch to add custom decals to your side panels and hood? Why not? When you own your car, the sky’s the limit. Trick that bad boy out, and make it your very own – because when you finance a car, it is your very own.