Buying or leasing a new car: what’s best?

When shopping for a new car, you must decide whether to lease or buy it. The choice can be difficult, as each option has pros and cons. Here’s what to consider.

Leasing
The best thing about leasing is that you can use the car during its best, trouble-free years. You can also afford a higher-priced ride with the most up-to-date safety features, all covered under a warranty.

However, continuously leasing means making monthly car payments without owning the asset. Moreover, contracts typically have mileage limits with fees for exceeding them. Plus, you’ll be penalized if you cancel your agreement early or fail to keep your car in excellent condition.

Buying
The biggest advantage of buying is that you own the car, which means you can drive it as far as you want and sell it or trade it at any time. However, the car’s value will depreciate, and the monthly payments are usually higher than leasing rates.

Visit your local car dealership to discuss their leasing and buying terms.