As we know that buying a car was one of the major purchases that you can afford and this is wise to look out for all options. Both leasing and purchasing were having their own advantage and disadvantage, just similar with renting or buying a new house. Recently, Smart Car had been gathering a lot of popularity in some states, because their fuel efficiency and other benefits. This is make some peoples start to consider Is Leasing A Car Smart? Or this is make some peoples confuse whether should they lease or buying Smart car? The biggest differences were that with a lease, you can get new car for every year and do not need to deal with some harshness of selling your car later. You only need to give you key to the dealer and getting new lease. If you want to buy new one, in other hand, every payment that you make of financed car will build your equity and after you pay ff the loan, it could be yours and free.
Consideration things when leasing vs. buying
Since you may wonder about several things, that make you wonder most was financial sense. However, this is depending on your personal preference.
– Considering your monthly cash flow
Your car leasing had been get lower monthly that payment comparing with financing a car with the same loan terms as well. This is base lease that you are paying getting depreciation during those years. If your need to get more access for cash in each month, leasing can be more favorable for you.
– How much you drive?
If you drive over than 10.000 until 15.000 miles, depending on our lease agreement, you should pay extra cost for each mile. Reports said that many leasing companies charge about 15-29 cents for additional mile.
– How hard you were in car?
If you were prone to get stretches on your car or high risk for damage, or the other damages, lease might be able to be your best option, because of wear and tear free. But this is also depending on your lease agreement.
– Did your drive the car for business?
If you lease your car, most of the portion for depreciation and financing can be reduced for your taxes. The loan interest to buy a car, however, this is not deduct able. So, this is really depend on your preference whether Is Leasing A Car Smart or buy it.