There always seem to be an endless debate over the issue of buying versus leasing a given product you want to get. Many prefer to buy because they erroneously believe that they own the car while they are financing the purchase when in reality they do not own the product until all payments are made. On the other side of this debate, some people believe in the lease option because it allows to make lower payments and get new versions in about 2-3 years but do not actually have any equity built up through the life of the lease.

To determine how to choose between buying or leasing an automobile you need to assess your personal preferences. Here are three things to consider:

#1: Do You Like the Latest and Greatest? Some people like driving the latest cars that feature the newest technologies. If you’re that person then leasing gives you the opportunity to get a new car every 1 to 3 years. Most dealers will readily take your current lease back and put you in the hottest models for the current year. You can drive like you own the auto show. Also, because the car is usually always under warranty for that time period you are fully covered for many repairs.

#2: Are You a Road Warrior? Most leases are financially structured to accommodate 10,000 or 15,000 miles per year.

If you exceed the total mileage allotment before the lease term is up you will pay expensive overage fees. So, if you typically drive a lot of miles annually or want the freedom to drive as much as you like, when you like – with no mileage restrictions then buying a car might be a better choice for you. If you do decide to lease, make sure the terms of the agreement include all the miles you expect to drive.

#3: Want More Car for your Dollar? When you lease, your monthly payments are going to be lower than if you buy. This may give you the opportunity to upgrade your vehicle selection without the same impact on your monthly expenses. You can drive that latest sports coupe on your subcompact budget. As you can see, there’s a lot to consider when deciding on buying or leasing.

A little soul searching and honest evaluation will help you make the right choice!. Just be honest with yourself and consider all eventualities through time. If you drive long distances, leasing definitely is not for you.

As found on Youtube