What’s the best route to acquiring a new and reliable set of wheels? Choosing the make and model of the vehicle you wish to drive, as well as other factors like amenities and mileage are important. However from a financial standpoint, one of your most important decisions is whether to lease or buy. Like many financial decisions, there are pros and cons to each option, so consider the following before signing on the dotted line.
Leasing a car
When you lease a car, you generally make an up-front payment and agree to make monthly payments for a new car over a defined period of time. Lease payments cover the vehicle’s estimated depreciation (how much value the car loses during the time you own it) and finance charges, but they do not help you build equity or ownership in the vehicle. Most lease agreements have an annual mileage limit, and you … Read More