NOV 6, 2017
Written by: Evelyn Suvajdzic
Clients often ask me if they should lease or buy a vehicle. Invariably the question is brought on by a lease dealer stating that, for a little money down and low monthly payments, you can drive a brand new vehicle for a couple of years. Once the lease term is up you have the option to buy out the lease or turn in the vehicle and lease a new one.
Leasing is more profitable to dealerships therefore; many sales people mislead consumers into believing that a lease is their best option.
The question to lease or buy depends on your personal priorities. From a financial planning aspect the best route is to pay cash for all items. The idea in creating financial wealth is to have as little debt as possible and, if you do have debt, for as short a term as possible.
A loan is generally a better option than leasing if you intend to keep the vehicle for more than three years. If you plan to trade frequently or are looking at a loaded vehicle, leasing may make more sense.
Here are some things to consider when purchasing:
Here are some things to consider when leasing: