According to Experian Automotive, in the fourth quarter of 2016 nearly 30 percent of new vehicles were leased. That’s a pretty substantial number of people opting to lease rather than buy. With that in mind, here are some do’s and don’ts when it comes to leasing a vehicle.
- you want a new model every couple of years
- you need a lower monthly payment
- you can choose a loan term three years or under
- you are a low mileage driver under 15,000 miles or so a year
Don’t Lease if:
- you drive over 15,000 miles or so a year
- you need a longer loan term over three years because after three years cars can being to incur expensive maintenance costs
- Don’t forget to consider insurance when deciding whether to lease. Check with your insurance agent to see if leasing will increase your premiums as it sometimes can.
- We recommend always go through a dealership, not a third-party leasing company. They generally mark up vehicles bought from dealers then stretch leases out past my recommended three years.
Click here for a list of leasing terms you should know when reading the fine print.