Buy or Lease

Q: I am looking at a new vehicle and am confused whether I should obtain a loan and buy it or if I should lease the vehicle. Would you give me some advice?

A: Leasing the vehicle will generally get you into a new car for a lower monthly payment than if you were purchasing it. However, at the end of the lease term (commonly 36 months) you do not own anything. If you always like driving a new car with the assurances of being under factory warranty, then leasing may be for you. If you like the idea of driving a car without payments for a couple of years, then purchasing may be for you. Also, purchasing the car makes more sense if you drive more than 15,000 miles a year, usually drive the vehicle for 5+ years, or like to alter the vehicle’s appearance. Check with your tax advisor for the tax benefits that may apply when purchasing or leasing a vehicle if you use your car for business purposes.