This is an often asked question and I hope I can shed some light on this. It really is a personal decision and the answer is... it depends on your individual situation.
Leasing is probably the most beneficial for businesses who claim their car or truck as a business expense because the leasing expenses can be deducted. You should, however, consult a tax advisor to find out which is better for you and for the details and tax benefits of leasing for business purposes. When you lease, you need to know that you'll have no equity in the vehicle at the end of the lease period — at the end of the lease you have to buy or lease all over again.
Leasing and buying are simply two different types of financing. Leasing finances the use of a vehicle for a specific time — consider it like renting — you do not own the vehicle at the end of the lease unless you pay more money to buy it; buying finances the purchase of a vehicle, which you will own when all your payments are made. Maybe You Should Lease If:
You want a new car every two years
You want lower monthly payments
You like having a car with the latest features
You like a vehicle that is always under warranty
You don't care about owning the car
You tend to drive an average number of miles
You properly maintain your vehicle
You are willing to pay more over the long haul
If you're uncertain about your financial future, leasing might not be right for you. That's because with a lease, you walk away from a car just when depreciation slows and -- under long-term financing -- equity begins to build. If you foresee owning the same car for seven years or more, you'll save money by buying.
It’s important to note that most leases charge an extra 12-15 cents for each mile you drive over a certain limit. Typically the leases allow 12,000-15,000 miles per year. — also, you'll have to pay extra for any damage to the car beyond normal wear and tear when you turn it in.
Maybe You Should Buy If:
You prefer to drive your cars for years
You prefer to build up some trade-in or resale value (equity),
You enjoy the idea of having ownership of your car,
You like the idea of paying off your loan and being payment-free at the end
You drive more than average miles,
You like to customize your cars,
You might have lifestyle or job changes in the near future
You don't like the risk of possible lease-end charges
Ultimately it's a personal decision — there are trade-offs, pros and cons to consider and how they apply to your lifestyle and financial situation. What might be right for you may not work for others.
Call me @ 910-538-4665 and we'll check out the option that suits your you best.