If your current vehicle is no longer reliable or is too small for your household, a purchase may be the best option. Drivers who don’t tend to put a lot of miles on their vehicle each year may be better suited to a lease. The tips below can help you make your decision.
Your Personal Finances
Make a list of what you need out of your next car and compare it to what’s available from your dealership. With this information, you can get a ballpark understanding of what your payment will be and the available loan terms.
As a general rule, a lease payment is going to be less than a loan payment. Of course, you’ll want to do your own comparisons. However, if you don’t plan to take the vehicle on long road trips, it’s entirely possible that leasing a vehicle may actually be easier on your budget, especially if you need a larger vehicle than you currently have.
Parents with children getting ready to leave the nest may struggle to pack the whole family into one vehicle. A short lease of a larger vehicle, such as an SUV with seating for 7 or more may be ideal. You may be able to purchase a smaller, less expensive sedan in just a year or two to use as a daily driver.
Necessary Vehicle Capabilities
If you have a small business and need a truck for work, purchasing a working vehicle with the towing and hauling capacity you need is key. However, many work trucks have limited space for passengers. Pickups at a higher trim level might have more room for people, but the cost of any truck at these higher trim levels may get in the way.
In such cases, it may make sense to purchase a certified pre-owned work truck with the capacity you need, especially if you currently have a reliable family vehicle. Bring your requirements to your dealership so you can carefully study the specs; even a rugged work truck can become overloaded and become a danger to drive.
Location Considerations
Weather can also have an impact on the best vehicle for you to drive. Those used to mild winters may need to spend a few years in the frozen north. In such cases, your rear wheel drive truck or SUV may not be safe.
If you’re planning a temporary relocation in snow country, leasing a vehicle that is known for great handling could be a terrific investment in your safety. An all-wheel drive SUV will ride a bit higher, making it easy to stay out of mud, slush, and snow. The all-wheel drive feature can even give you a bit more purchase on icy roads. If you choose to stay in a cold country, you can purchase the vehicle or extend the lease and keep enjoying those safety features.
There are many new cars with a terrific price point right now, especially if you can work with a base model trim level. Don’t rule out your ability to afford a purchase! If your budget is stretched too far, a lease can be an affordable option.