Struggles with Buying or Leasing Your New Vehicle
Posted by Master of the Universe on Jun 16, 2008
Many consumers today are fighting with the issues of financial struggles. Determining if they want to sacrifice the large upfront payment to own a vehicle or if they want to settle and pay monthly for a vehicle they don’t own is a tough decision to make. The decision of buying or leasing their vehicle is becoming more and more a time consuming worry.
The consumer initially needs to make the choice for themselves. There are good and bad sides to both buying and leasing. So how do they determine which road to travel? Considering carefully how much they can afford and what their personal need is for the vehicle at hand. It all comes down to the decision and situation of each consumer no quick fix.
Finances:
Determining whether or not the vehicle is affordable would be a rather big chuck of your decision. Looking over each situation delicately and determining if your job is stable or how set are you in your finances currently will play a bigger part in that particular part of your decision. When leasing a vehicle the monthly payments are largely cheaper than that of purchasing your vehicle. So maybe if your finances are a bit shaky you may want to consider leasing it is a smaller obligation.
If cash upfront is not a problem and you can afford a large upfront payment you might want to consider purchasing your vehicle. The option to pay the down payment and sales tax, while getting a loan may also be an ideal decision depending on the interest rate of the loan your company will charge you. You would have ownership of the vehicle and be free from worry as you drive your vehicle.
If luxuries that you cannot afford upfront are an issue then you might want to consider leasing the vehicle for a small committed time. Buying the vehicle would require a sizable down payment on a luxury vehicle and may not be in your price range. Remember however that leasing can have harsh penalties if you terminate the lease early it can indirectly damage your credit as well. You must make sure you know the length of the lease you are locked in to and know you can pay the lease payments on time for the length of your commitment.
Life Style and Preference:
In addition to your finances you must take into consideration your personal preferences. Figure out what kind of person you are and what you will be using the vehicle for in your life. This consideration is important simply because if you decide to purchase the decision will be for until you can afford to purchase another car. If you lease the decision will last for the lease obligation of the contract. Some people like to switch vehicles every 2 or 3 years and if this is the case you may like the idea of leasing a vehicle. It will also give you the option to pick something new and exciting and not obligate you for a life time like the purchase of a vehicle might.
Transportation:
How far do you generally drive? How many miles will you be driving the vehicle on a regular basis. Will this distance be feasible in the contractual agreements of mileage in the leasing agreement or will you have to pay too much for going over the limit? The average limit is 12,000-15,000 miles is this a foreseeable amount or do you need more mileage. Think about the wear and tear your transportation needs might have on the vehicle? Are they within expected limits or do you tend to put more wear on a vehicle then the average vehicle owner? If you can handle the limits to leasing and can return the vehicle in considerably good condition it may be a good choice, if not buying might be best in your future.
Darren Williger is an over-caffeinated, non-smoking, car buying, low carbohydrate eating, winemaking enthusiast who writes for Cargoyle.com, MotorMaven.com, and MixtureCars.com.