Are you looking to pick up a new car for yourself? Then you likely already know you have two choices: Buying a car vs leasing a car. And honestly, if you ask drivers which option is better, you’ll ignite a war even bigger than if you asked them to pick between Apple or Microsoft. But really, there’s a reason for this.
After all, who knows whether buying vs leasing a car is better, it is specific to the individual driver. Leasing truly benefits a select group of drivers, while buying a car benefits everyone else. We need to take a look at whether buying vs leasing a car is right for you.
Buying vs Leasing a Car Which is Better?
You Don’t Have the Money for a Down Payment
When it comes to buying a car vs leasing a car, you may need a vehicle but you’re short on cash, this would make leasing a car the go-to option. In fact, it’s super common to find leasing deals that require you to put nothing down at the forefront. And even at that, when leasers require a down payment, it’s usually a fraction of the price you’d usually pay when making an outright purchase from a dealership!
Also, while we’re on the topic of finances, keep in mind that leasing a car not only requires lower monthly payments but also lower sales tax. On average, the sales tax on a leased car is about half of what you’d pay for a purchased car. So if you’re in a financial bind, leasing could be a decent option for you.
You Don’t Drive Much
If you are tossing up buying vs leasing a car, you need to think about how much you are going to drive the vehicle. With leasing, all these prices come with a limit on the miles you can drive. But really, that’s not an issue if you rarely drive. In fact, if you can count the times you’ve taken your car out this month, then leasing is definitely something to consider for saving money in the long run.
So if you don’t drive your car a lot, when it comes to buying vs leasing a car and which is better, leasing is definitely the option for you.
You Enjoy Changing Things Up
Here’s the big point with buying vs leasing a car, with leasing, you get a cool new car frequently. In fact, most leases only last 1-3 years. And after that time is up, you can lease an entirely new car.
What’s also cool is that these cars can be pretty nice as well. So if you want a fun car without the high price, leasing is a solid option. Also, keep in mind that if you’re getting a car this frequently, you’ll also pay fewer trips to the mechanic for maintenance. Plus, you’ll trade-in your car before you get to the expensive fixes like transmission replacements in most cases!
Tax Deductible For Small Business Owners
This option does benefit both buying vs leasing a car and does not necessarily help us answer Buying vs Leasing a Car, which is better?
But, one final benefit of leasing a car and buying a car is that it’s tax-deductible if you own a small business or are self-employed. So if you are a business owner buying or leasing a car can save you money in the long run!
Final Thoughts: Is Leasing For You?
At the end of the day, when it comes to buying vs leasing a car, leasing is a pretty cool option for a select group of people. But that doesn’t mean it’s for everyone! Keep in mind that you’re locked in a contract with limited miles in a car that’s not technically yours (think of it more like renting). If you do decide on buying a car, here are some questions to ask before purchasing.
So if you’re a person who drives a lot, or enjoys making modifications to your car, then leasing is something to avoid! HOWEVER, if you’re looking to save money and only take your car out a few times a week, then leasing is without a doubt something to consider to improve your lifestyle!