Buy or Lease?

With interest rates going as high as they have been, more and more consumers are thinking that they might want to lease a car instead of getting into a car loan. However, depending on who you ask, everyone has a different opinion as to whether or not you need to lease or buy. With auto leasing growing by 21% over the past year alone, you can tell that a lot of people are taking it more and more seriously.

Rising interest rates have been taking their toll on the auto loan industry, so much in fact that the car sales industry has been affected to. It isn’t so much that people don’t want to buy a new car; they just know that they will pay exorbitant interest rates for the car loan.

Car manufactures are now trying new tactics to get people into their showrooms and into their cars. They are offering new and better deals for customers, especially for leases. They know that if they get someone to lease a car for three years, chances are that when that lease ends they will either buy or lease another car.

They are offering better interest rates, shorter leases, lower down payments, etc. all to get you to buy their car. One of the biggest things to remember about a lease however is that you pay for your miles. Most leases put you in somewhere around 12,000 to 15,000 miles a year, and if you go over that you are looking to pay big bucks. So it is best to weight your options before you lease.

Back to April Index