auto lease or buy TITLE?

Auto lease, or buy your next car?

Should you buy your next car or buy it outright? Which is right for you? The reasons and answers are going to be different for everybody, but in most cases, buying a car is much cheaper in the long run than an auto lease.

You should probably get an auto lease if:

  • You drive a car less than 12,000 to 15,000 miles a year.
  • You like the status of a luxury car that is probably out of your budget if you were to buy the car.
  • You are neat and clean and don't have kids.
  • You want to drive the latest cars ever year or two.

Be honest with yourself.
Do you meet those criteria for an auto lease?

If you only want to get a car lease because you want the status of driving a car you probably could not afford to buy, an auto lease is not for you. What are the drawbacks of a lease?

  • What if you go over the base mileage with the lease contract you signed? Guess what? Expect to pay a PER MILE fee! That's right, you may end up paying 12-15 cents a mile. If your work is 20 miles each way, for a total of 40 miles a day, get ready to pay an extra $6 a day. What happens if you get a new job and have to drive 100 miles a day?
  • If the car is not in absolute immaculate condition, get ready to open your wallet again. More fees.
  • Buying the car at the end of the lease term is not a good deal. Because of the complicated financing (and as a result of the low monthly payments you have been enjoying) the price that they offer the car to you is almost never going to be the fair value for the car. It's going to be a lot higher. Open your wallet!
  • Ok, so just trade it in for another car right? You remember the fees if it's not in great condition don't you? The terms that they give you for a trade in will probably not be that favorable because the leasing company will nitpick down the estimated value of your car because it's not in immaculate condition.
  • After 4 years, you would probably only have 1 year left before you paid it off. If you drove it another 5 years, that's 5 years without a payment! That could be $20,000 of savings after 5 years. If you continued on a leasing cycle you would always have a monthly payment.

Which seems right for you?

For me an auto lease just doesn't make sense. I own car I purchased in 1994. I paid it off in 1999 and relish not having to make those monthly payments. Think of the credit card bills you could pay off, or the savings you could accumulate over those years?! Maybe after years of saving, then you actually could afford a more luxurious car.

If you are ready to buy that car, then I recommend 1800 AutoYes because I used them for my loan and couldn't have been happier. It took no time at all before I was ready to walk into any dealership with my financing already approved. Talk about bargaining power! Get your auto loan NOW - FREE 60 Second application

Still need more auto lease information? Check out my page on auto lease guidlines.

 

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