The old age question keeps coming up. I wanted to briefly give you my 2 cents.
Financially speaking I am biased towards buying. I will let you decide.
Lets explore Leasing -
Pros-
-Lower monthly payment.
-Drive a better car with lower monthly payments.
-New car every 3 years. Shorter payment time.
-Low chances of car breaking down since it is new and all malfunctions are likely covered under warranty.
- Low or no downpayment.
Cons-
-You do not own a car at the end of the deal.
-Recurring down payments every 3 years.
-Limited by mileage (miles are set during the deal).
-Unable to alter the car.
-Be wary of excessive wear and tear at the end of the lease.
-Penalty if terminating lease early.
Lets explore Buying -
Pros-
-You own the car at the end of the deal. NO car payments as long as the car runs.
-Unlimited mileage
-You can alter car as you wish.
-May trade in for next car.
Cons-
-Higher down payment when initiating the deal.
-Longer payment period (5 years) with a higher monthly payment.
- Selling the car may be a hassle... (you may bypass this by going to businesses which will buy your car outright like carmax).
Truth be told the first question you need to ask yourself is: Am I buying a car for me or to impress others? Once you get over this question you will be on your way to owning your car.
Cars will start losing value the moment they drive out of the dealership. This means it is a depreciating asset. Let this sink in.
When you lease, you will be paying the amount of money the car will lose in value.
Till next time.
JL