Leasing can be a good thing or it may be a bad thing depending on what your situation is.  Like anything in life, everything has it’s pros and cons and today, let’s look at the pros and cons of leasing.  Many potential car buyers want to buy but they find that they would rather lease.  Is leasing for you?  Let’s find out.

How long do you want to own the car?

Are you the type of person that likes a car every two or three years? If you want to get something new every few years, I would think you’re a great candidate for a lease.  If you become emotionally attached to a car, you may find that you would rather buy because after a lease, buying a car just isn’t worth it.

How much driving do you do?

If you do a lot of driving each year and when I say this, I mean over 15,000 miles a year, which comes down to a thousand or so a month, you may want to buy because paying for each additional mile can kill you in terms of financing.  A dealership will charge you for every mile that you go over that was written in the contract.  This means, if you can only drive 12,000 miles a year, you better not go over this amount.

Can you even lease your car?

Some major car companies today have buckled down and got rid of their leasing program because of the economy.  Check with your local dealership and see what kind of leasing options they have, if any.  You may be disappointed and find out that you can’t lease.

You’ll get a lower payment and nicer car

A huge plus about leasing a car generally means you’re going to pay lower amounts each month for your car.  If you find yourself buying, you’re going to have a larger payment but you get to own the car and can sell it off in the future.  Yes, a car loses value but you won’t get anything back on a lease.

Have to put down big payment

When signing a lease, most of the time, you’ll have to pay a lot of upfront fees and put down a big down payment.  When you buy, there’s a possibility that you can find a loan with no money down.  Once again, you’re going to have to research your options to see what kind of loans that are out there.

By now, you should be able to get a better idea on if you want to lease or not.  Leasing isn’t made for everyone but it may be for you.  Do your homework and see what’s out there.  You may find that you’re a bigger fan of leasing rather than buying.