Buy or Lease: Which Automobile Transaction is Better?

By: Chris Contessa

When individuals are considering buying an automobile they are
often faced with the dilemma as to whether they should buy or
lease the car. There are pros and cons associated with each and
the following paragraphs will highlight some of the points
regarding both leasing and buying so that individuals can use
the information to better help them make an informed decision.

Length of Time with the Automobile

One consideration is how long you might want to keep the same
vehicle. Leases usually run 2 to 3 years, depending on the lease
type and company, however when one purchases a car, they most
likely tend to stick with that automobile for a longer period of
time. Therefore, if one is interested in changing automobiles
every 2 to 3 years, then a lease transaction may be the better
option. That is if you don't mind making monthly payments and
never actually buying the vehicle. If that is a problem then
buying is a better option because your payments actual result in
the purchase of a car.

Monthly Payments

When considering whether to lease or buy an automobile, one
should consider how much they want to spend each month on
automobile payments. For those who wish to spend less money each
month a lease is probably better; however, if an individual can
spend a little bit more on the car each month, then purchasing
might be the best bet.

Building up Sale or Trade Value in the Automobile

For those individuals who wish to build up sale or trade value
with an automobile, purchasing the car will help that person do
so. On the contrary with a lease the individual does not build
equity in the car as they do not own the car but rather lease it
for a period of time. Therefore, if one is looking to build up
sale or trade value with an automobile, a purchase of the car is
the better route.

Drive More Than Average

When deciding between a purchase and a lease, an individual
needs to determine how much they expect to drive the car on an
annual basis. If the individual is going to be driving more than
the average person would, a car purchase may be better as many
companies that lease vehicles will charge extra money for extra
mileage put on the car. On the other hand, if the individual
will be driving the car an average amount of time, then a lease
may work for that particular person.

The previously mentioned topics are just a few factors which an
individual should consider prior to determining whether a lease
or purchase is the best bet for them. When all is said and done,
deciding whether to purchase or lease a car is a personal
decision which needs to be left up to the individual who will be
driving the automobile.

About the author:
Chris Contessa is an automotive enthusiast that runs several
automotive forums and websites. You can find Dealer reviews and
ratings at his website: http://www.DealershipRatings.com