Car Leasing 101 - Auto Leasing vs Buying

Should you buy a new or used car or lease a car?

Which one is better – leasing or buying? Really, it all depends on your preference, one is not better than the other. However, the difference between the two is how comfortable you are within financing your vehicle.

Let us explain. Leasing and buying a new car are simply two different methods for vehicle financing. Leasing a vehicle is financing the usage of that vehicle, while buying a vehicle is the financing of purchasing the vehicle. Both have their advantage and disadvantages and one is not better than the other. It all depends on your preference of financing a vehicle. So the real question is which one is best for you?

Two factors to consider

1. Which financial option is best for you
2. Which one suites your personal priorities and obligations best

Questions you should ask yourself to help determine which option is best for you include:

• Is ownership more important than no down payment (define: down payment) and/or low initial costs
• Are long term costs more important to you and your family than lower monthly payments on your vehicle
• Is having a new vehicle every two to three years more important to you than long term vehicle costs, such as maintenance and repairs

So it’s not an easy decision which one is better than the other, but your deciding factor will be your financial and personal situation.

Part II: Car Leasing vs Buying - The Difference