When getting a car or truck, one of the largest things that go through our mind is what do we really want and what can we really financially afford?
Often times a consideration is given to leasing a vehicle instead of purchasing one.
Many people usually have a strong opinion in regard to leasing. Some oponions are that you only rent what depreciates and buy what appreciates. Others think their family always bought vehicles and never leased. We want to give some financial help in making a clear, informed decision.
I personally have both bought and leased a number of vehicles over the years. My first auto lease was a 1983 Escort. The base lease payment was $99 per month. For a college student to run a reliable, brand new car that got fantastic mileage was awesome.
Since then, I’ve leased both new and used trucks and cars over the years. I’ve also purchased new and used vehicles. So, how do you decide which is the best financial decision for you?
Things to consider include:
How many miles do you drive a year?
What is the projected resale value of your used vehicle?
What are the current interest rates?
Are there special rebates?
Our auto lease verses buy calculator will help give you some direction. You will eventually want to speak with a dealer. Sometimes vehicle leases have quirks to them. A Ford F-150 I leased actually had a lower monthly payment by adding an off-road package. That’s right, by putting options on a vehicle, it lowered the payment.
Remember, on a vehicle lease, the auto company is projecting what it can sell the vehicle for now verses what it will be worth at the end of your lease. The off road package on my truck gave a higher trade in value than what it actually cost to put on up front, thus lowering the payments.
Finally, if you are thinking about getting a new vehicle verses a used one, we have a financial calculator for that also.