Is Leasing a Vehicle a Good Idea in 2022?
To lease or to buy? That is the big question for many of us when it comes to car shopping. While both options have their benefits, if you don’t do your research ahead of time, you may end up essentially purchasing the same vehicle twice. We should also note that pandemic-related supply chain issues have had a huge impact on the availability and costs when it comes to car buying in 2022.
Before deciding which option is best for you and your financial goals, ask yourself the following questions to get a better idea of whether leasing or vehicle ownership is right for you.
How Long Will I Keep This Vehicle?
Consider how long you intend to keep driving the vehicle you have in mind. Are you someone who likes to keep up with the latest trends and newest models? If so, long-term financing isn’t ideal in this scenario. Taking advantage of leasing could provide you with needed flexibility where financing may not. However, if you end up really liking the car you leased or market conditions are similar to the current environment, you may be better off taking the buyout option at the end of your lease, which may require additional financing. It may feel like buying the same car a second time, but still be the right decision for you and your goals.
What’s My Average Monthly Mileage?
Did you know how far and how often you drive can be a major consideration in your leasing or buying decision? While the cost to fill up your gas tank is often the first reason we consider mileage in our car shopping, understanding how mileage can play a role in the leasing terms of a vehicle can impact your decision. Before signing on the dotted line of your lease, be sure to fully understand any mileage restrictions you may face. If you your job requires a lot of driving or you just love to be out on the open highway, perhaps purchasing your next car is the better way to go.
What’s My Budget?
Regardless of leasing or buying, your budget should be a primary consideration in your decision-making process. As you begin breaking down your budget constraints, remember to factor in and compare the overall costs of ownership vs. leasing. Ask yourself questions about the all-in cost of financing your purchase, including what your monthly maintenance expenses could look like. Compare these costs with a vehicle lease agreement. What expenses will the dealership cover? How much money would you have to put into a car that will be essentially returned at a later point?
There’s no right or wrong decision when it comes to doing what’s best for your financial goals. But taking he time to weigh out the pros and cons before deciding if leasing or buying your next vehicle can save you both time and money in the long run. And as always, we’re here to talk you through the process, whether you’re just thinking about these options or ready to make your move. Our team of knowledgeable auto lending specialists are available to you via phone by calling 804-274-1200 or stopping by the branch location most convenient to you.
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