How To Decide Whether You Should Buy Or Lease Your Next Vehicle

There comes a moment in your life where you cannot continue using public transportation to get around. Whether you’re commuting to work, going out on a date, or headed on a road trip outside of the city, having a vehicle at your disposal would sure make life easier. The question is whether you should buy a vehicle or just lease one for a couple of years? Here are some things you should take into consideration when making this decision:

Monthly Payments

The first thing you need to consider when deciding on whether leasing or buying is better for you is the monthly payment. While it’s nice in theory to own a car outright, keep in mind that you’ll need a down payment, and your monthly payments will be higher (and for longer) than if you lease a vehicle. If you plan on getting a Subaru, there are many Subaru lease deals out there that will get you into a new car even if you’re working on a tighter budget.

Insurance

In both cases, you will have to spend some money on insurance. The difference is that when you lease a car, not only are you required to get full coverage, but you’ll also have to get gap insurance (which covers the difference between what your vehicle is currently worth and the amount you actually owe on it). When you purchase a car outright, you can get the minimum insurance coverage legally required by your state, though I wouldn’t recommend it.

Customization

Buying your own car means that you can basically do whatever you want with it, tricking it out with a crazy sound system, a custom paint job or vehicle wrap, aftermarket wheels, etc. This is not the case if you are going to lease a vehicle, as you have to return the car to the dealership at the end of the lease exactly how it was delivered to you. If you’re going to customize your leased car, just make sure it’s something that’s easily reversible (eg. if you get a new exhaust, make sure you keep your old one so you can swap it back when it’s time to return the car).

Long Term Plan

In the long run, if you lease a vehicle, you end up spending quite a bit of money with nothing to show for it at the end of your term, versus if you bought your car. This doesn’t change the fact that you might not have been able to afford getting such a vehicle when you first leased the vehicle. If you plan on keeping a car for a long time without trading it or selling it, then buying it will save you a lot of money that you can put towards doing maintenance and such. And you won’t have a never-ending car payment.

In The End, The Choice Is Yours

As you can see, there are pros and cons for both each. Only you can objectively decide whether buying or leasing a car is better for you. Hopefully these points gave you something to think about while making your decision.