Buying vs. Leasing a Car
Insights from OSAP Titanium Partner Saling Simms Associates
Some people approach buying a car like they approach marriage, “‘til death do us part.” Others prefer to keep their options open, trading in every few years for the latest make and model, the most cutting-edge technology or the highest horsepower. Whichever describes you best, we all face a similar decision when it comes to acquiring a car: finance, lease or pay cash.
When shopping for new vehicles, about one-quarter of consumers choose to lease, while the majority choose to finance. From an investment perspective, which choice is best? That depends on your lifestyle, cash flow and personal preferences.
For many, paying cash for a car is the simplest way to get one. When you drive off the lot, you own the vehicle outright and are free to do whatever you want with it. You face no penalties or mileage restrictions, and you have no monthly payments. However, you have paid cash for a vehicle that is expected to depreciate over time.