Like to trade up every few years and drive newer models.
Drive less than 10,000 miles a year.
Service your car regularly and keep it relatively clean.
Like to keep your monthly payments as low as possible.
Don�t have much of a down payment.
Lease agreements favor people who don't drive many miles and maintain their cars well. If you like to drive new models and feel your car is part of your image, you are well-suited for leasing -- it allows you to trade up frequently without taking a big hit on depreciation. Finally, leasing is a good option for people who don't have money for a big down payment and need to keep their monthly payments low. Your payments will be lower because you are only paying for the depreciation of the vehicle while you drive it, rather than the entire cost of the car.
Plan to keep your vehicle for more than 3 years.
Drive more than 10,000 miles a year.
Service your car infrequently and for major problems only.
Are more flexible in your budget when it comes to monthly payments.
Can afford to make a larger down payment on a car when needed.
Buying is the better choice when you can afford to make a down payment, want to avoid paying higher interest and can afford to make larger monthly payments. If you're willing to keep your car at least 80% of the term of the loan, the long-term cost of buying will work out to be less than that of leasing.
Your driving habits, your personal preferences, current financial situation , and dealer Incentives all factor into determining whether you should buy or lease your next car. Research The Auto Dealer to find the current loan rates, leasing options, dealer incentives and possible manufacturer rebates to find out whether buying or leasing is the better option.