Your questions answered by an industry expert
Is it better to buy or lease a car?
Is it better to buy or lease a car? Jane, North Sydney, NSW.
If you like a new car every three years that is always under warranty, and like lower monthly payments, then leasing should be considered.
Other issues such as the number of kilometres you drive, whether you care about equity you have in the car and whether you might want to keep the car, can affect your decision.
If you buy, you will have higher monthly repayments but there will be no big pay out at the end of the contract. If you want to jazz up your car to suit yourself, then buying makes sense.
Also, the experts say if you want to keep the car for the long haul and you drive above-average distances, then buying might be a better option.
Also if you like to run your own maintenance program, being a buyer of a car might be the go.
People say for the same car, same price, same term, and same down payment, monthly lease payments will always be significantly lower than loan payments.
If you sell the leased car at the end of the contract and it's in good condition, the overall cost, especially if there are tax deductions, can come out very close, either buying or leasing.
However, if you keep the vehicle after the loan ends, then being a buyer is cheaper.
My tip is to select a car that has a great history of maintaining value over three years and then shop for the lowest bank loan for a car and then shop for the best lease deal. Don't just go for the dealer's deal! Then actually do a three-year test of outgoings, deductions, etc and see what really works for you.
Copyright © 2009 Yahoo! Pty Limited. All rights reserved.
Advertise with Us - Privacy Policy - Terms of Service - Help