Should you lease a new car? We’ve got some sweet February lease deals going on at Matt Castrucci Honda, so if you’re already considering it, now is a great time to act. But what if you’re not sure whether to lease or buy? Like so much else in life, there’s no one-size-fits-all answer. It depends on your individual priorities and what you need from your new vehicle. If you’re wondering whether leasing a car is the right decision for you, here’s a few things to consider.
Pros and Cons of Leasing A New Car
By leasing a new car instead of buying, you’ll get a lower down payment and lower monthly payments, so you can afford more car for your dollar. In exchange, you’re giving up some long-term value. Is that trade-off worth it?
First, ask yourself: How long would I keep this car if I bought it? How would that long-term value benefit me? If you’d consider selling or trading in your car for a newer one within the next few years anyway, leasing makes great sense. Trading in a leased car is hassle-free. If you’ll always want to drive the shiniest thing on the block with the latest new features, leasing can help you afford it more easily. On the other hand, if you think “long-term value” means reliability and low maintenance costs, if you’re more concerned with the use you’ll get out of a car, and you wouldn’t be likely to sell it off again any time soon, leasing might not be for you.
Second: Are you comfortable with making monthly car payments, but having trouble saving enough money for a large down payment? That’s another reason to consider leasing — you might be eligible for a lease with no down payment due at signing.
Third: How much will you drive the car? Lease contracts come with mileage agreements, usually somewhere around 12,000 miles per year. Be aware that you’ll be charged extra at the end of the lease if you go over the mileage limit. Also, be aware that you’re committing to taking very good care of the leased car — turning it in with scrapes, dents, or any other damage will also cost you extra. Are you ready and willing to take on these restrictions to afford your dream car, or would you rather buy a cheaper one and have the freedom to put as many miles on it as you like?
Of course, these are just the basics — whatever your credit and financial situation is like, our specialists can help you figure out what kind of financing makes the most sense for you. Here’s some other resources that might be helpful: