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Hi guys, really like your show and I’m thankful you talk about real life/important stuff that has opened my mind. I’m currently in the market to buy a new car, I have never had car payments cause I used to buy used cars and pay it at once but now I want a new car and I’m faced with either leasing or financing. Could you talk about leasing vs. financing if you have any information please? Thanks again.
Nine times out of 10, buying a car will be the smarter financial decision. I’ve never leased a car (or rims, yes that is a real thing and a horrible idea) in my life. I also have no plans to ever do so.
However, as with most things, buying or leasing is ultimately a personal decision. Everyone is different, so you have to try and find what’s best for you. Also, different leasing companies will offer differing costs. This means you should definitely do your research.
The few times I’ve seen it make sense include: 1) you have great credit (740+) and 2) you are able to land a “$0 down” lease. Generally speaking, if you’re going to buy an asset that doesn’t appreciate in value (like a car), you want to risk as little of your own money as possible on the down payment. A good article on this topic comes from Business Insider and it includes a flowchart. Everyone that knows me knows I have an unhealthy fondness for well-designed flowcharts: Should I Buy Or Lease My Car Flowchart. Tailor your decision to your circumstance and best of luck.
Whatever your decision, enjoy your new car!
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I like that you talked about the fact that buying a car is better than leasing one. I will have to tell my coworker this on Monday. He has been wondering about this of late. I know that he will be able to make a better choice with this info.
I agree, if there is any one, major benefit to buying the car over leasing it, it is that you actually own the vehicle once the payments are finished. Of course, when you are making the decision to buy or lease there are still several factors that you have to take into consideration. For example, you need to make sure that you have the appropriate money put away in order to buy the vehicle.
I am going to get a car. This article is very helpful for me to decide whether I should buy or lease a car. This article is very easy to understand. Thanks for sharing this.