To Buy or Lease? Know the Facts

Whether you should buy a car or lease it is often a troubling question, because there are benefits to both of these arrangements. Generally, however, leasing a car is like renting a house – it’s yours, sort of, but you never really own it. 957779 car detail 3 To Buy or Lease? Know the FactsYou can’t put too many miles on it, you have to give it back, and you can’t make changes like putting a spoiler on the back or having it painted because you don’t like the color. That doesn’t mean that leases are bad, though. It just means that there are time when they work well and times when they don’t.

If you have a business, you might want to lease a car and write that off as a business expense. A lot of people do. If you don’t have a business, though, you might find that buying a car works better for you.

You probably won’t get a new one every two or three years (although some people do), but you’ll have a good warranty and when you pay the vehicle off you’ll actually own it, which means that you won’t have a payment anymore. With a lease, no matter how nice the car is and how often you trade it in depending on your lease term, you’ll always have a car payment, every month, forever.

Some people don’t care about that, but you’ll end up spending thousands of dollars that you could have kept, invested, or used for something else simply because you leased a car instead of bought. Weigh your options carefully when making the decision between buying and leasing a car.

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