Buying a vehicle is a fairly straightforward process. You borrow money from a lending institution and pay the monthly payments until the loan is paid off. As you make payments, you gain equity in the vehicle until it’s eventually all yours. You can keep the vehicle as long as you like and do whatever you want to it, from installing aftermarket accessories to a new paint job.
Since you are actually paying back the whole amount (unless you put a down payment), a finance payment is higher than leasing. Leasing can be very appealing because of its lower payments. Once you have enjoyed the vehicle for its term, you drop it back off at the dealer and walk away or lease another. You are always covered under warranty and driving the latest model. This definitely makes leasing appealing to consumers.
As attractive as leasing seems…there are some big downfalls:
Financing has it’s downfalls as well.
With all of this in mind, it really does depend on what you would be using the vehicle for. If you are just going to use it to go to work locally and the grocery store in town, leasing might be the better option. If you travel great distances for work or have messy kids, financing is the better choice. Do your research and find out what option is better suited for you.
It may be that buying a used vehicle is the better option, as it does have its advantages. One of them being that the vehicle will have already taken a major hit in depreciation! Just be sure you ask for the Car Proof history report. Working at ISB, I have seen how valuable this report can be for the consumer and for insurance companies.