Leasing: Lower monthly payments, predictable costs, and access to new cars every few years. Perfect for those who value convenience and the latest features.
Buying: Higher upfront or monthly costs but better long-term value. Ideal for those planning to keep the car for a long time or who drive a lot.
2. Current Market Landscape:
New car prices and interest rates are historically high.
Average payments (end of 2023):
Lease: $606/month.
Loan: $738/month.
Inventory increases may lead to better deals soon.
EV Leasing Bonus: Federal tax credits of up to $7,500 can make leasing EVs financially attractive.
3. When You Should Lease:
Predictable Costs: Lease terms often match warranties, covering repairs and maintenance.
Luxury Vehicles: Discounts often bring luxury car lease payments closer to mid-range car financing.
Latest Safety Features: Leases let you frequently upgrade to cars with the newest safety and tech advancements.
4. When You Should Buy:
High Mileage Drivers: Most leases cap annual mileage at 10,000-15,000 miles, with penalties for overages.
Long-Term Plans: Owning means no payments after the car is paid off, and you retain resale value.
Changing Needs: Buying is better if you foresee needing a different car soon (e.g., growing family).
5. Why Lease an EV?
Tax Incentives: Federal credits apply to EV leases without the strict requirements tied to purchases.
Avoid Depreciation Risks: EV prices are volatile; leasing transfers resale value uncertainty to the lessor.
Tech Evolution: Rapid advances in EV technology ensure leased EVs remain up-to-date with features like fast charging.
6. Vehicles Better Suited for Leasing:
Cars with great road-test results and owner satisfaction but poor reliability are better leased than purchased.
Leasing ensures coverage under warranty and avoids the hassle of long-term ownership of unreliable models.
Pro Tip:
If you prefer leasing, watch for deals on EVs or luxury vehicles, and prioritize those with robust warranties. For buying, focus on long-term value and reliability.
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