Who Should Lease vs. Buy
Making the decision to purchase a new vehicle involves a lot of choices. First, you must decide if you want a car, truck, van, or SUV. Secondly, you must decide what’s the most important to you, a comfortable vehicle, or one that is flashier. Thirdly, you have to decide how important are an automobile’s safety, reliability, and fuel ratings. After you have decided on a type of vehicle, you are now ready to make a decision, lease vs. buy. The decision to lease vs. buy will vary depending on an individual’s needs.
Options For The Professional
Consumers young and old who are in business, or who hold down highly respectable jobs such as doctors and lawyers, often use their automobiles as a way to project their professionalism. They generally drive newer model vehicles and only keep them for short periods of time. When it comes to the lease vs. buy question, most professionals choose to lease. Many large companies choose to lease vehicles for their employees to use as company cars. Additionally, these professionals may lease their own personal vehicles, as well. For those who like to drive the latest models and who can stay below the yearly mileage caps on leased vehicles, this option proves to be the best.
Options For The Family
Chances are if you have a house full of children, you will do a lot of driving. You can also guarantee that during your vehicle’s life there will be a multitude of things spilled on the seats and in the floor. For the family, the choice of lease vs. buy is one of practicality. While leasing a vehicle might seem like the right choice for the family of four, most often purchasing a vehicle is a better investment.
If you have a highly active family who is involved in a lot of activities, you could quickly go above the mileage allowance for the year in only a few months. Going beyond these restrictions leads to additional charges that make leasing less cost effective for families. Choosing to buy allows families more freedom to do what they want without having to worry about keeping the vehicle in immaculate condition. Buying an automobile versus leasing one also means that if your credit is less than perfect, you won’t have as much trouble finding financing.
Options For The City Driver
When you live in a city, it isn't always practical to use public transportation. Train stations aren't always close at hand; bus stations get crowded and can be dirty, especially in the rain. For those who live in the city, the lease vs. buy question is easier than most. While it may not seem practical initially, it may do you more good than harm to have a vehicle. It doesn't have to be the greatest car on the planet, but if you lease a car, at least you know that it will run. Leased vehicles are new, and are covered by the manufacturer’s warranty. If most of your driving is done from the near-suburbs, or even if you live right downtown, owning a car can be a definite advantage. The convenience of having your own mode of transportation, and being able to get in and go at will is a liberating experience.
Of course, there are also practical matters to consider. It isn't always easy to get your groceries for the week, and try to pack them home on the bus or train. Mass transit systems don't typically provide storage for their passengers, and it's hard to carry a 20-pound turkey on your lap. You don't have to answer to anyone, and you don't have to stick to the typical bus route. You will certainly save time by sticking to your own schedule, instead of waiting for the next bus to get there. It is certainly more expensive to lease a car than it is to ride the bus or take the train, but the convenience makes it worth the expense. Rather than making a long-term investment with payments for the next three to five years, those living in the city can lease a vehicle and save thousands of dollars.
Options For The Retiree
You have spent the last 30 years driving second-rate vehicles, and now that you are retired, you have decided that it’s time to purchase a dependable and reliable vehicle for those leisurely Sunday drives. Perhaps you have family all over the nation and want to spend time traveling to visit them. Of course, you are now faced with an option, lease vs. buy. For the retiree, either option may be preferable. It usually comes down to weighing the options.
The life of the retiree is generally thought to be one of leisure, but many find that their days and evenings are filled with events and gatherings that require them to travel. Some grandparents help their children out by providing transportation to baseball games and soccer practice for their grandchildren. For these retirees, the option to purchase might better suit their needs. Other retirees spend most of their time at home and don’t do a lot of traveling. For these, the choice to lease makes more sense than buying a new vehicle, and in a few years they can return the lease and get something newer and better.
Ultimately, the choice of lease vs. buy is one that can be determined based on your lifestyle. Some things to consider before making the ultimate decision are: Do you travel more than 10,000-15,000 miles per year? Do you take good care of your vehicles? Do you have good enough credit to be considered for a lease? Are you willing to drive the same vehicle for several years, or do you want the newest model available?
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