Are you thinking about leasing a new car? Why is it better to buy a used car than to lease a new one?
What is the better option financially?
While leasing a brand-new car for a monthly payment may seem tempting, it makes more sense, financially, to buy a used car. That’s because leases have stipulations that may end up costing a person much more than they bargained for… What if the lease has mileage limits and the person goes over those limits? Then they have to pay a penalty, which is typically up to 20 cents a mile.
What’s more, if a person brings the vehicle back to the dealership and the dealer thinks it has more wear and tear than it should, they can charge a person extra fees. Finally, leasing payments don’t end until you surrender the car, and then you don’t get to keep it. Contrast that with buying a used car– which you get to keep!
You Can Score More Favorable Deals
Buying a used car can often be the smart choice, especially when great financing deals are made available. If a dealer offers something like 0% financing, why not buy a car from them? Or a person could check with a credit union for a favorable rate. Eventually car payments will end, and then the person owns the car. It’s an asset. They have something to show for their monetary investment. They can keep the car indefinitely, and eventually re-sell it, making some money back on their investment.
Cheaper Insurance, Too
Did you know that the annual insurance cost for a leased car is typically higher than for a purchased car? Did you also know that the driver of a leased car has to pay personal property tax on the car, whereas, in some states, no personal property tax is owed on a purchased car?