When it comes time for a new vehicle, the decision to lease or purchase varies from consumer to consumer and is dependent upon many factors. Once reserved for corporate and luxury car buyers, leasing has grown in popularity to its highest numbers ever.

Leasing a car requires less cash up front and lower monthly payment, meaning you can afford more car for less money. At first blush, then, leasing looks  highly attractive. But there are several other factors to consider.

Freedom of Owning

Purchasing a vehicle comes with more freedom. You are free to do whatever you wish with the vehicle – drive it for a long time, sell it or trade it in when you are ready for a new one. Lease contracts, in contrast, are difficult and costly to break. You can also modify your owned vehicle however you wish – change the wheel rims or sound system, install custom accessories, or modify the engine or suspension.

Owners can drive as they please, as often as they please, while leasers are limited in mileage. Additional miles on a leased vehicle may be purchased but can be costly.

If you damage a vehicle you own, you can decide how much repair to pay for. If a dented fender doesn’t bother you, it’s your choice if you want to leave it that way. If you dent a rented vehicle, you’ll pay for the damage.

And while a car loan payment may be higher than a monthly lease payment, eventually you’ll pay off the loan and your payment will be zero while you continue to own the car. Because of this, over time, purchasing a vehicle usually costs less. If you always lease your vehicles, you’ll have the payment to make every month, for as long as you drive.

Attraction of Leasing 

That’s not to say that buying is the clear choice. There are certainly some other advantages to leasing. For one: buying a car isn’t really an investment. It’s an expense. As soon as you drive a new vehicle off the lot, in begins to depreciate, and its value continues to decline for as long as you own it.

Because lease terms typically run just a few years, those who lease will always be driving a fairly recent model and reaping the benefits of enhanced safety and other features the industry has to offer.

Another option to consider is purchasing the vehicle at the end of your lease term. You might think of this as the best of both worlds, or the worst. You’ll have the lower monthly payments during the term of the lease, but all during that time, you’ve given up the advantages of owning.

If you need help with personal financial planning, contact the professionals at Preziosi Nicholson for assistance. We can help you determine the best approach to acquiring a new vehicle, whether through lease or purchase. Call our office in Millville, NJ, at 856-794-8400.