The Mortgage Market View...
Buying versus Leasing: Two Sides of the Same Coin
Despite claims to the contrary, there really is no one-size-fits-all answer to the question of whether to buy or lease a car. In either scenario, a portion of every payment is lost to depreciation, even with the best interest rate attached. With this in mind, consider your own lifestyle needs and priorities at the time of each transaction. Please go to our website for more information on this or other Real Estate topics at http://www.tombrewerjr.com/.
Benefits of Leasing:
Lease payments are generally between 30%-60% lower than car loan payments.
It's as if you have a guaranteed buyer of your vehicle at a specified price when the lease is up. If the vehicle is worth more, you can sell it on the market and pocket the gain, if it is worth less than the lease buyout value, you just hand over the keys.
Little or no down payment is required for a lease, freeing up cash for investments with a better return.
Benefits of Buying:
With the purchase of a car, significant trade-in or re-sale value can accumulate.
There are no surprise fees or charges after the fact, for wear and tear or overuse.
Once your loan is paid off, you will have something tangible to show for the money you have spent over the years.
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