Deciding to LEASE or BUY a Vehicle

When it comes to deciding whether to buy or lease a vehicle in 2024, there are several factors to consider. Let’s explore the pros and cons of each option:

Leasing a New Car:

Pros:
- Lower Monthly Payments: Leasing typically offers lower monthly payments compared to buying, making it more budget friendly.
- New Cars Every Few Years: Leasing allows you to drive a brand-new car with the latest features and warranty coverage, and you can switch to a new model every three years.
- Advantageous Deals: Dealerships are keen on leasing so that you might find attractive lease deals in 2024.
Cons:
- No Equity: Since you don’t own the vehicle, you won’t build equity. When you return a leased car, you won’t have a down payment for your next vehicle.
- Mileage Restrictions: Leases come with mileage limits (e.g., 12,000 or 15,000 miles per year).

Buying a New Car:

Pros:
- Ownership and Equity: When you buy a car, you own it outright. Over time, you build equity, and eventually, you’ll have an asset you can sell or trade in.
- No Mileage Restrictions: Unlike leases, there are no mileage limits when you own a car. You can drive as much as you wish without worrying about excess charges.
- Customization: You can personalize your car with modifications, upgrades, and accessories.
Cons:
- Higher Upfront Costs: Buying a car usually requires a larger down payment and higher monthly payments compared to leasing.
- Depreciation: New cars depreciate rapidly, and their value decreases over time.
- Maintenance Costs: As the owner, you’re responsible for maintenance and repair costs once the warranty expires.

Consider Your Needs and Preferences:

Think about how long you plan to keep the vehicle, your budget, and your driving habits.
If you prefer driving a new car every few years and want lower monthly payments, leasing might be a better choice.
If you want long-term ownership, no mileage restrictions, and the ability to customize your vehicle, buying could be the way to go.

Remember that individual circumstances vary, so it’s essential to evaluate your specific situation before making a decision. Need some help deciding? We can run the numbers for you. If you have any more questions, feel free to reach out to our team at Friedman + Huey and ask!