How to Decide Whether to Lease or Buy a Car
Leasing can give you more buying power but demands meticulous vehicle care and maintenance.
Instructions
- STEP 1: Decide whether you have enough money for a down payment on a car. If you don't, consider leasing.
- STEP 2: Decide whether you intend to own a car for a long time. If you do, consider buying.
- STEP 3: Decide whether you are going to use the vehicle in a manner likely to damage it - as a work truck, for example. If you are likely to damage the vehicle, consider buying.
- STEP 4: Find out how good your credit rating is. If it's bad or is mixed, consider buying; leasing requires better credit.
- STEP 5: Estimate how much you can spend per month on payments. If you can't make high monthly payments, consider leasing.
Tips & Warnings
- Leasing and buying each have advantages and disadvantages. Consult your loan officer or accountant for advice.
- If you total a leased car, you may be financially liable for the balance of payments on its total value.
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