The decision to lease or buy can be a difficult one.  Motorists should consider more than just their budget.  Typically, leasing tends to be cheaper, but it also leaves drivers with no equity after the contract is up.  There are some important factors to keep in mind when making this important decision.

First, it is necessary to look at the cost.  Consider four factors when you’re thinking of leasing.  These are the leases length, the payments monthly, the mileage restrictions, and the down payment.  If you exceed the restrictions on the mileage you could ring up big fines.  Also, if you hold onto a lease for more than three years you will often have to replace tires and pay for other maintenance.

Next, look at your budget.  Leases are almost always cheaper for short-term because there isn’t a down payment and the monthly costs are low.  However, leases end up being more expensive than buying a vehicle that you are going to keep for a decade.  This is assuming that you purchase an auto warranty with your car so that you don’t end up paying unnecessary expenses.  But if drivers prefer to have a new car every three years, leasing is the way to go.

Also consider your life plans.  If you are going through life changes, such as moving far away, or starting a family, you are going to benefit from leasing.  This will provide you with the flexibility that you need.

Consider these factors and make a decision to buy or lease based on your needs.  Just remember, if you buy, you want to be covered with an auto warranty to save you money in the long run.