Buy Vs. Lease
According to Edmunds.com about 70% of customers pay cash for their car or finance their purchase with a loan and about 30% lease. So, how do you decide to lease or buy?
The benefits of leasing are very simple: leasing allows you to drive a new car every two to three years at a lower payment, avoid the higher costs of ownership associated with owning an older vehicle and it gives you the option to own the car at the lease end term if there is equity, but walk away from the car if there is zero or negative equity.
The benefits of buying a car are simple as well: you get to enjoy the pride of ownership, you can modify the car as you want without breaking the lease terms and you will have more flexibility to sell the car when you want. Additionally if you were to keep a car over multiple lease cycles you will have equity in your car instead starting a new payment cycle.