And while there will probably never be a clear victor in this debate, the general consensus is that leasing a car can make a lot of sense for some people, and buying a car makes sense for others. So which camp do you fall into? Let’s see if we can help you figure out whether you should be buying or leasing your new car!
Weighing the Pros and Cons
First, let’s start with the advantages of leasing a car.
You can look forward to paying little to no money up front, which is a big advantage for those in need of a new car but without much cash in the bank to use for a car. Next, you’re looking at lower monthly payments than if you purchased the car outright. And finally, you can turn in your lease when the deal is up, assuming you’ve taken good care of your car, and either get a new lease or decide to buy a vehicle at that point.
Now, let’s look at the disadvantages of a lease. First, your payments don’t go toward owning anything, which means that you don’t have something to sell later on if you need to. Also, you’re limited in your options if you want out of your lease. Chances are that you’re going to pay a large sum of cash – sometimes as much as six months of lease payments. And lastly, you may be limited by mileage or risk paying more for every mile you go over your yearly limit.
Take The Quiz to See If You’re Better Off Leasing
Curious to see where you fall on the spectrum between leasing and buying? Take this quiz below, but be aware that the answers labeled as wrong are not actually wrong! It’s simply the way the quiz widget is configured, so there has to be a “wrong” answer. But, in this quiz, there are no right or wrong answers!
Car Lease Vs. Buy
For more information on car lease vs. buy analysis in Massachusetts, check out this Lease Calculator from SmartMoney.com as well as these helpful resources from the Massachusetts DMV.