Car Buying Lease Guide – Car Lease Vs Buy?

Car Lease Vs Buy – Pros & Cons

Car leases earned something of a bad reputation during the "Wild West" days of the 1980s and '90s, but they offer a great deal of advantages — if they're structured right, for the right customer. They also have drawbacks that make them less than ideal for everyone.

One reason to favor car leasing vs buying: Lease payments usually run about 30 percent lower than purchase payments.  Why pay an additional $100-$200 a month for the same car?

Also, the typical three-and-a-half-year stretch of an auto lease fits well with most drivers' car-changing needs. And turning in a car at the end of a lease poses much less hassle than trading in a financed car that still has money owed on it. Plus, at the end of the lease, if you want to keep the car, you can consider the lease term an extended test drive and buy the car at the equivalent of auction pricing; otherwise, you can turn it in and leave it for someone else to deal with. Or you could buy the car at auction prices, then sell it in the retail market for a profit.

Another benefit of leasing comes in the loss of value that follows accidents. When a car has been in an accident, it earns a "dirty report" from CARFAX and AutoCheck that haunts the car every time it's sold in the future. If you were leasing the car when the accident happened, and had the bodywork done properly, you could turn the car in at the end of the lease with no penalty. But if you owned the car and tried to sell it, you would eat the loss in value.

The most common objection to leasing is, "I don't want to rent it — I want to own it." Though it could be argued that since average car buyers now possess their cars for a period of time (42 months) shorter than the terms of the average new auto loan (72 months), it's really the bank or credit union that owns the vehicle.

Leasing isn't for everyone. If you're the kind of person who likes to pay off a car outright and drive it into the ground, leasing obviously isn't what you're looking for. If, on the other hand, you like to swap cars every year or two or your life tends to change dramatically, a three-year lease probably won't help you.

Car Buying Tips Guide – Car Lease vs Buy?

If you are trying to figure out whether to car lease vs buy, then purchase the Car Buying Tips Guide today!  It will save you thousands on your next vehicle transaction.