To Lease or Buy?
That's the Question
Leasing continues to grow in popularity among many new car buyers and will most likely be a tough decision for a young adult weighing its advantages and disadvantages. To help provide some perspective for those considering driving a new vehicle, below is a simple example of what students and young adults should consider when making this important decision and the financial impact of their final choice.
Joan and Roger Davis have always purchased their vehicles, but after hearing friends and relatives tout the benefits of leasing, they have decided they should at least look into it.
At first, leasing may seem very complicated to understand. But, as Joan and Roger soon discover, the basics are pretty simple: If they purchase a vehicle, they will own it; whereas if they lease a vehicle, they will have the use of it (typically for two to three years). Leasing generally works best for those who prefer to drive newer model vehicles with no money down and a low monthly payment, and who are willing to maintain the vehicle in good condition and to keep the mileage within the contractual limits (usually 12,000 to 15,000 miles per year).