Leasing Versus Buying: What Should You Do About Your Next New Car?

When you’re looking for your next new car, consider your lease versus buy options.

Leasing is often thought of in negative terms but for many, it is far from it!

Do you frequently trade in your car every three or four years? Are you interested in driving more car for less money? Do you neglect to service your car as it gets older, or worse, find yourself cash-strapped and not able to afford the increased maintenance required by older cars?

If you answered yes to any of the above, you should consider leasing!

After all, unless you pay cash for your car, you never really own it until you pay it off. The bank does. And with car prices rising, installment loans are being written for longer terms - often times as many as 72 or even 84 months.

Study the amortization schedules on these lengthy loans and you will see that it can be as much as five years or more before you are no longer “upside-down.”

“But I can’t lease, I drive too many miles,” is something I often hear from friends. Yet the fact of the matter is the impact of how many miles you drive per year is the same whether you lease, pay cash or use traditional finance. You will still be upside-down for approximately 60 months. If you choose to trade out of your car before then, you will take a hit on your trade-in value – regardless of your method of finance.

Lease Assumption is another option to consider. Sites like SwapALease.com put potential buyers with lease “sellers.” You can often pick up a near-new, previously leased vehicle with 8-36 months remaining on the original lease for pennies on the dollar.

Not interested in driving someone else’s car? Try an independent leasing company like D&M Leasing in Texas (www.dmautoleasing.com). D&M specializes in finding any make, any model and any style car for thousands of customers across the country. They leverage their buying power to provide customers with affordable leases without ever setting foot on a dealer’s lot. They can even arrange multiple test drives on the same day so you can compare similar vehicles at the same time!

Next to “buying” and trading a new vehicle every three to four years, leasing is often the more cost-effective option. In many cases, you can save as much as 40-50% off of a comparable installment loan.

When you are considering the “purchase” of your next new car, check out D&M and SwapALease. You’ll be glad you did!