Should I Buy or Should I Lease?

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Should I Buy or Should I Lease?

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There are many factors to consider when getting a new vehicle.

Should I Buy or Should I Lease? By Judy Heft

Of all the questions that baffle humanity, none is quite as mysterious and pressing as: Is it better to buy or lease a car? There are so many variables to consider, from your credit rating to where you live. Below I’ve listed some of them for you to consider.



  • When you lease a car, you’ll be driving a new one every 2-3 years.
  • The manufacturer’s warranty is in effect for the life of the lease.
  • Monthly payments on a lease are generally lower than buying.
  • Less money is due at signing.
  • In some cases, sales tax is only paid on a fraction of the full price (check with your accountant about how your locality taxes leases).


  • When returning a leased car there will obviously be no trade in toward a new vehicle.
  • Mileage limits and excessive wear fees can add up to nightmarish proportions.
  • Excellent credit is required to lease a car.
  • Any customizations made to the vehicle will cost you a lot of money at the end of the lease.



  • Your monthly payments translate into equity on something you actually own part of.
  • There are credit requirements, but they are much more flexible when compared to the requirements for a lease.
  • It’s possible to pay off the loan and own the vehicle outright, with zero monthly payments.
  • Whatever trade-in value there may be can be applied toward a new car.


  • Monthly payments are generally higher than a lease.
  • Sales tax is based on the full price of the car.
  • The value of a car depreciates as soon as you drive it off the lot.
  • Down payments are often required.

For most of us, our cars are the closest thing we have to a second home — and we should treat the financing every bit as seriously as we would a mortgage. How will it impact your ability to pay all of your other bills? How will it affect your ability to vacation? To find out how your bank account can absorb the ripple effect that a new vehicle creates, contact me.

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