Considerations when leasing a car

If you’re in the market for a new car, the question of whether to buy or lease will most likely arise during the research process. Both buying and leasing can provide benefits to the driver. Looking closely at the specifics of your situation will answer the question: Should I buy or lease?

When deciding whether or not to lease a car, there are certain factors that should be taken into consideration:

• Mileage: How many miles do you predict that you will drive the car each year? Most leases come with mileage penalties when the driver exceeds the allotted miles for the year.
• Repairs: Some leases will include full maintenance on the vehicle for the life of the lease. Does this appeal to you?
• Letting go: Will you have trouble turning in the car at the end of the lease? If you think that you might want to own the car for longer than the lease period, buying may be a better option. Some leases do offer the option of buying the vehicle when the lease is up, but this option may not make financial sense.

Recommended reading: Pros and cons of auto leasing
Recommended resource: Auto lease vs. buy calculator