Before choosing which road to go down, it’s important to understand the key distinctions. Check out this Personal Finance with Leila video, to see how she did with this experience.
Leasing a vehicle: With this, you're basically renting it from the dealer for a certain length of time. That's usually 36 or 48 months. Once your lease period ends, you have the option of returning the vehicle to the dealer or purchasing it at a pre-determined amount, which is defined in the lease contract.
Monthly car loan payments are calculated based on the sale price, the interest rate, and the number of months it will take to repay the loan.
Choosing whether to lease a new vehicle instead of buying it largely comes down to priorities. For some drivers, leasing or buying is purely a matter of dollars and cents. For others, it’s more about forming an emotional connection to the car.
About the video:
"Yes, that's right. Before buying my car I was leasing! In this video I share the pros/cons, my experience, and how much I will be paying in total for a 2015 Toyota Camry.
- Lower monthly payment.
- No service fees.
- New car/tech/specs.
- Costs more in the long-run.
- Will always have car payment.
- Mileage limits"
If you want to see more Leila's videos, here's her YouTube Channel.