Monday, July 4

Should I Lease or Buy a Car in 2022?

Should I Lease or Buy a Car in 2022?

Most people would tell you that it makes more sense to buy a car rather than lease it, but times have changed over the past several decades.

The old way of thinking was that you should always buy and never lease, but your driving habits could say something different. Today, you can often find some easy lease programs that allow you to get into a car and drive away without paying anything up front. This means you might be better off in a lease, but buying might be the right option, let’s explore.

Pay Less When You Lease

The basics of a lease program allows you to essential rent the car for the time you drive it. Typically, lease terms are 36-48 months long. The amount you pay every month is equal to the depreciation of the car each month. You aren’t paying a principal and interest combined payment, only the estimated depreciation cost. Because your monthly payments are lower, you’ll be glad to have the savings offered when you lease the car you drive. This allows you to choose a car that would normally be out of your price range if you purchased a vehicle.

Buy the Car at the End of Your Lease

The current auto market is in flux, but things will likely level off and come back to normal in the next couple of years. The decision between whether you want to lease or buy a car comes down to how much you want to pay. Your lease contract has a quoted purchase price that you can pay when the lease is over. This gives you the flexibility needed to buy the car you’ve been driving for the past few years when your lease is over.

You’ll Always have a New Car When You Lease

If you want to stay current and have a modern car to drive every few years, leasing is the preferred method of payment. Your lease term ends after 36 or 48 months and when this time is up you can bring the car back to the dealership and enter a new lease with a new car. Many dealers are more than happy to put you into a new car at a low price when you grab another car from them.

Your Car Might Always Be Under Warranty

One of the biggest benefits of a lease program is the time you spend driving your car. If you love the feeling of a car that’s covered by the bumper-to-bumper warranty, a lease program is right for you. This could tip the scales in the favor of a lease program and away from the idea to buy a car. You’ll feel great knowing your car always has the factory warranty to protect you.

You’ve Got to Stay Within the Mileage Limit

On the negative side, if you lease a vehicle, you have to stick to the mileage limit per year to avoid extra fees when you return the vehicle. Most of the time, the car you lease has a 10,000-mile limit. Some programs offer up to 15,000 miles per year, but they cost more and you’ll pay more during your monthly bill. If you’ve got a long daily commute, it might make sense for you to have an extended mileage limit in the leased vehicle you drive.

Wear and Tear is Subjective

The wear and tear of the vehicle is something that’s not clearly written into most lease contracts. If you choose to buy a car instead of entering a lease program, you won’t have to worry about the wear and tear of the vehicle you drive. This is a hidden expense that shows up at the end of the lease program, making it more costly when you return your vehicle back to the dealership.

Forget Customization When Leasing a Vehicle

If you lease a truck, SUV, or performance car and you want to improve the capability of the vehicle with some upgrades, you can’t. The leased vehicle is owned by the finance company and they expect that car to have the same equipment and offer the exact same drive as when you took it off the lot. This is a serious limit to what you can do to the car you drive. Anything you add must be taken away when its time to return the leased model to the dealership.

A Purchase Means the Car is Yours

We’ve talked a lot about leasing a vehicle, but you should know there are benefits to buying a car outright. When you buy a car instead of entering a lease agreement, the car is yours. You don’t have any mileage limitations, you can customize the vehicle the way you want, and you’ll be glad to drive the way you want. Your purchase delivers you the benefits of enjoying a car that you own and can do with what you want.

Purchase Programs Can Put You Upside Down in Your Car

One of the negative aspects of buying a car is the finance program that you could end up in the negative end of a loan. Right now, dealers are offering more than some cars are worth, and more than most owners still owe on their vehicles, but that’s not always the case. Being upside down in your car means you owe more on the vehicle than what its worth, which is certainly a feather in the cap of a lease decision.

Should You Lease or Buy a Car?

If you want to pay less each month, enjoy a new car every three to four years, and can keep to the mileage limits, a lease program might be the right way for you to drive. On the other hand, if you want to customize your car, enjoy driving for as long as you want, and enjoy no limits on the vehicle you enjoy, you’ll want to buy the vehicle you take off the lot. The decision is yours, and you have a lot of things to think about when you head to the dealership to pick out the next vehicle you want to drive.

This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.

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