Xplainsit

This is a common question we get asked all the time. Should I lease or buy a car? The answer to this really depends on a few things.

1. How long are you going to keep the car? If the answer to that question is under 5 year then you should strongly consider leasing it. Leasing a car is basically agreeing to pay the difference in the new car price to the depreciated value at the time of turn in. So you are essentially paying the same as if you bought it new and sold it at the same time your lease would have ended. The saving in all of this is with the sales tax. With a lease you are only paying tax on the amount the car will depreciate and with buy you have to pay sales tax on the whole amount. So this is really the determining factor to see if you will benefit from leasing.

2. Do you plan on modifying the vehicle? If the answer to this question is yes then you probably should buy.  With a leased vehicle you are not allowed to make modifications and it could end up costing you money when you go to turn it back in.