Should you lease or buy your next vehicle? Most car buyers base their decision on the amount of the monthly payment and on how long they typically drive their vehicles. In general, customers who lease prefer to drive a new car every 2-3 years and people who purchase a vehicle tend to drive their vehicles for 5 to 10 years. There are advantages and disadvantages in both cases. The advantages to leasing include: Lower payments - Lease payments are typically lower because you’re only paying off the depreciation on the vehicle, not its full value. Another advantage to leasing is there’s often little or no down payment required. In fact many dealers often waive the down payment. Also, a lease offers Easy Turnover. When your lease is up you simply stroll into the dealership and hand over the keys… you don’t have to sell the vehicle or haggle over trade-in value on your next purchase. Some of the disadvantages to leasing include no equity, less flexibility if you need to end your lease before the full term and there may be additional mileage charges if your driving habits change and you exceed the lease limits.
