Should You Buy a Car or Lease It?
by VINCE COLLASO
You want a new car, but you're faced with a dilemma: should you buy a car or lease it? Should you pay cash upfront for a car or pay monthly installments for it?
The answer is not set in stone. There are positives and negatives in both, and it all depends on your own personal financial issues.
Affordability
You must first ask yourself, can I afford it? Is my job stable and is my financial situation healthy enough? It is true that the short-term monthly cost of leasing is much lower than the monthly payments when you buy a car? Remember, you you only pay for ��the portion�� of the vehicle��s cost that you use up during the time you drive it.
If you have the cash to pay upfront, you may choose to pay the down payment and sales taxes, either in cash or all rolled into a loan. The interest rate, of course, will be determined by the loan company. You're then the owner of that car, with all of the freedoms that it brings....
Now, if you want luxury vehicles but can't afford the high upfront payments required when buying a car, then leasing might be for you. Leasing gives you options: you don't have to pay a large amount of money upfront, which is similar to the interest rate on a financed loan. Be warned though: if you terminate a lease early or if you default on your lease payments, you'll have to pay stiff penalties and ruin your credit score. Be sure to budget in your lease payment for the duration of the lease, whether it be three years or four.
Personal Lifestyle
Other than finances, when you buy a car or lease one depends largely on your own personal lifestyle. What does the car mean to you? Will you like to bond with your car or would you crave something new and exciting?
Buy a car if you're going to drive it for more than four or five years. Negotiate carefully, though. If you're not too big on ownership and would rather drive a new car every two or three years, then lease a new car.
Transportation Needs
Ask yourself these questions: How many miles do I drive a year? How properly do I maintain my cars? If you answer 40,000 miles or more a year and you don't care very much about your cars and love paying repair bills, then buy a car. Leasing cars is
based on the assumption of limited-mileage, usually no more than 12,000 to 15,000 miles a year and wear-and-tear considerations. Unless you can keep within the prescribed mileage limits and keep the car in a good condition at the end of your lease, you might incur hefty end-of-lease costs.
Vince Collaso wants you to learn more about how
to buy cars for as little as $300/mo.Visit http:/
/tinyurl.com/6zvjn7. Visit his blog at
autohyperdrive.blogspot.com.
