Deciding whether to lease a car or buy a cheaper model is not an easy decision. As they say, there are no solid rules for this since there are a lot of factors to consider. The factor themselves play different roles depending on the car model you want to have.
Depreciation is one of the leading factors you must consider in buying or leasing a car. If the model you want to have has a strong possibility for a resale at a good price, then buy it. On the other hand, if the model is more likely to depreciate fast, then leasing is the better option.
Average Annual Miles
Check on how many miles per year your desired car model can make. Usually cars for leasing have a mileage limit so you need to be meticulous in reading about this factor. If you intend to use your car heavily, then you must choose leasing over buying. This is simply because you may find it hard to resell a car with high mileage since it is one of the depreciating factors of the vehicle. To help you with your decision, here are some good reasons on why you should choose leasing over buying a car:
- Serving and Maintenance
Many car leasing company include servicing and other maintenance services in their monthly payment price.
- Car Switching
Reselling a car can be a pain most especially when you need the money immediately. In leasing, you can easily switch car models or car types during the leasing period. If you think that your income will be higher in years to come, then you can upgrade your car into a much better model.
Compared to other methods, your monthly payment during a lease is usually lower, making you save more.
Knowing about the facts about a particular model as well and its placement on the market can give you plenty of ideas. Bankrate.com is a site that may help you in this area since it features impressive comparisons on five popular vehicle models including their value and possibility for depreciation.