Signs You're the Ideal Candidate for a Car
With automotive advancements being made seemingly
at the speed of light, the option to lease your next new car may seem to be the
more appealing, financially savvy decision. You may be right, but whether or
not leasing your next car is advantageous will depend largely upon your
preferences and priorities, your driving habits, and you financial standing.
Leasing might be in your best interest if...
- You're looking to keep your
monthly payments low. Generally, you can lease a car for less than
you would be required to pay each month if you were to take out a loan; in a
similar vein, you can get "more car"--a higher trim level or a more
luxurious model--for the same or similar monthly payment as if you were looking
to purchase a vehicle.
- You enjoy having the latest and greatest
and/or you like driving a new car more often. If you're the type of
driver who enjoys driving a newer model more of the time, or you get bored
easily and like to mix it up, opting for a lease will probably prove the
advantageous choice. You likely won't have the same degree of flexibility to
trade in and buy new cars as regularly as you would if you simply signed up for
a lease instead.
Think Taking out a Loan is Your Best Bet? Find Out
if You're Right:
For all of the indisputable benefits of leasing a
car, the traditional car buying route continues to be the best bet for a large
portion of the population. You should probably take out a car loan
- You tend to drive a
lot. Most lease agreements have a clause that specifies how many
miles you are allowed to put on the car; go over this allotment, and you will
required to pay excess mileage charges when you go to return the lease.
Naturally, if you're the owner of the car (or, making payments on it until you
will be the owner) there is no limit to how much driving you
want to have something to show for your payments. Unlike leasing,
when you're paying off an auto loan, once you've paid in full the car is yours
to do with it what you will. If you choose to lease, when the lease contract is
up you have to return the car to the dealership or pay off its residual value
if you decide you want to buy it from the dealer.