Business Credit News

Should You Lease Or Buy Your Next Car?

Are you looking to cut your expenses while the economy gets back on its feet? Then now might be a good time to consider giving up your pricey car lease in favor of either leasing a cheaper vehicle or purchasing a car.

If you’re looking to get out of a lease without paying penalties, incurring expensive termination fees or hurting your credit, companies like LeaseTrader.com make it easy by matching up vehicle lease holders with credit-qualified individuals anywhere in the country who are looking to take over the remaining portion of the lease contract. This approach provides an ideal way to walk away from your lease contract and save money.

So now what? You still need transportation. Should you lease or buy your next car? The answer depends on your needs and what kind of deal you can get. Usually a car lease is the cheaper option in terms of monthly payments, but with so many car manufacturers making incredible deals on new cars, you may be able to buy for a comparable price to a lease. Ford Motor Company is now seeing rising sales and is back on the road to profitability, and GM just announced plans to buy AmeriCredit to help its customers with financing the purchase of new cars.

According to Leaseguide.com, here’s what you need to consider when deciding between leasing and buying:

Leasing: If you like driving a new car every two or three years, like knowing your car has the latest safety features and is under warranty, don’t like the hassle of selling a used car, don’t care about building ownership equity, have a stable lifestyle, drive an average number of miles, always maintain your cars, and are willing to pay more over the long haul to get these benefits, then you should lease.

Buying. If you would rather build up some trade-in or resale value (equity), like the idea of owning your car, prefer paying off your loan so you can be payment-free for a while, don’t mind taking the risk of the cost of repairs after the warranty has expired, drive a more than average number of miles, prefer to drive your cars for years to spread out the cost, expect lifestyle changes in the near future, and don’t like the risk of possible lease-end charges, then you should buy. Definitely check out what car manufacturers are willing to offer. Now is the time to get a good deal.

David Gass
Founder, Business Credit Services, Inc.
Earn.com Expert Advisor

Tags: business transportation, buy a car, buying, lease a car, leasing, transportation