We often get asked what is the best option for me? Should I lease or should I buy? So we’ve decided to write a blog post about what the different options mean, and how they differ. If you’re interested in having a most up-to-date vehicle, and will be driving clients in it, you will probably be opting for the Leasing option for examples. Don’t forget you could also get a tax write off on that! If you prefer to think long-term with your car, and want to keep it for more than 4-5 years, you’re better off purchasing it. Here are the pro’s and con’s of each of the options.
Upsides of Car Leasing
- Lower monthly payments
- Lower down payment
- You can drive a better car for less money each month.
- Lower repair costs (With a three-year lease, the factory warranty covers most repairs.)
- You can more easily drive a new car every two or three years.
- No trade-in hassles at the end of the lease
- You pay sales tax only on the portion of the car you finance.
Downsides of Car Leasing
- The car is not yours at the end of the lease.
- Your mileage is limited to a set amount, typically 12,000-15,000 miles a year (excess miles are paid for at the lease termination), depending on how much you negotiate.
- Lease contracts are confusing.
- Leasing is more expensive in the long run (as opposed to buying and driving until the wheels fall off).
- Wear-and-tear charges can add up (paid at lease termination).
- It's costly to terminate a lease early if your driving needs change.
We hope this has helped you in your decision making. If you have any additional questions, feel free to reach out to us. Thank you for reading!
