Reader question:
I’m looking for a new car, and I’m not sure if I should buy one or lease it?
Morgan
It’s hard to decide, isn’t it?
Nowadays, car buying has gotten a lot more confusing, and for this reason the leasing of new cars has become such a great option. Many people choose to lease their car instead of buying it, and it has many good effects doing this. Before making the decision of whether you should lease or buy, you should consider what your history with cars is and what kind of car purchaser you are. Remembering how cars have treated you in the past, and how you have treated them, is important when trying to make this difficult decision.
Do you knock your cars around? If you have a history of driving just a little less than responsibly, then leasing a car might not be the best idea for you. Lenders don’t take kindly to dents and scratches on their vehicles, so if you tend to rough things up and like to drive fast and take sharp turns, think about buying a car instead, even if you have to get a used one. Companies that lease cars want to get their cars back the way they went out, and if you mess them up, you could end up with handfuls of extra fees and fines.
How about your insurance? Does it cover leased cars? It’s really important to think about this, because when you’re leasing a car it’s even less yours than when you’re buying it and getting it financed. Many insurance policies don’t cover leased cars, so make sure that yours has the option, because if you total the car or it gets stolen you’re in a world of trouble. If your insurance doesn’t have the option, cover your back by getting gap insurance.
How’s your credit? Buying the car you want at a good price can be extremely hard for someone with bad credit, but at the same time, there are tons of car lots out there that want somebody, anybody, to buy their cars and you’ll hear them speaking about it in their bad credit/no credit welcome commercials. They’ll charge you a lot, but they’ll still take you. On the other hand, it’s almost impossible to lease any kind of car with bad credit, and if you do get a deal, the prices will be through the roof.
Cheers,
Fashun Guadarrama.