When to Lease Versus Buying a New Vehicle

The decision to purchase or lease a new vehicle is an important one. For many people it is one of the biggest investments they will make, and the choice between buying and leasing could save you thousands of dollars over the life of your lease or loan. The decision depends on what you plan to do with the car and how long you want to drive it. Below is a scenario when a lease is better than a purchase of a new vehicle.

The purchaser does not want to drive the vehicle for more than two or three years. Let’s say you are looking at a new model but want the chance to purchase an improved model in two to three years. If you buy, you need to sell your current vehicle and hope you don’t lose too much value before purchasing the newer model. In a lease, you can trade the car in for the newer model at the end of your lease and don’t need to worry about the hassle of selling or losing value in a trade at your dealership.

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