Should I buy or lease a car? It is a common question, and each side has its pro’s and con’s. The answer really depends on the vehicle. If you want to, for example, buy or lease a Ford in Clinton, North Carolina, consider the following three criteria:
1. Do you drive a lot of miles, or relatively few miles?
If you drive a lot, a lease may not be for you. Most leases have mileage caps of around 10,000 to 15,000 miles a year. This means that if you drive more than that number of miles, you have to pay a certain amount of money per mile over the cap. That really adds up if you drive a lot. It is for this reason that leases are more common in big cities like New York or San Francisco where people do not drive long distances often. If you live in Clinton, North Carolina, you may not drive much.
2. Do you like to drive a new vehicle every 2 to 3 years?
If you are the type of person who likes to drive a new car every few years, a lease may be a good option for you. Most leases are around 24-36 months, though the terms do vary. This means every few years you can trade in and upgrade to a new vehicle. If you like having access to the latest in technology, you may be the right candidate for a lease.
3. What kind of monthly payment are you looking for?
It is generally agreed that the best financial decision long term is to buy a vehicle. However, this assumes that the person has the finances to afford a higher monthly payment, pay the loan in full, and still own the car for a couple of years. If you want a lower monthly payment, perhaps around 200 dollars or below a month, a lease could be better for you. Most leases are lower in cost than a monthly car payment, sometimes much lower depending on the vehicle.
Leasing a vehicle is better for some, but not all. Speak to your financial person or your local Clinton Ford dealer to find out if leasing a vehicle could be good for you, or if it is wiser to buy.