Is Leasing Right For Me?

Do I want a lower monthly payment?

When you lease a car or truck you only pay for the part of the car you use. In most leases you are only using the car for the first 2 or 3 years of that car's life, so the payment to lease a vehicle can be much lower than a payment to purchase the vehicle outright.

Do I want more vehicle for my money?

If leasing allows for a lower payment versus buying, then you may be able to get more well equipped vehicle for the same payment as buying a less expensive vehicle.

Would I prefer a shorter term and less repair costs?

Leasing eliminates the possibility to get into a "negative equity" position, or owing more on the vehicle than its worth on the market when you want to sell or trade. Also, with a shorter term of use, the vehicle will likely run its best as well as be protected under the original factory warranty.

Would I like to save on sales tax?

in a lease you are only required to pay sales tax on the part of the car you are using, so in a Wisconsin lease (most counties) you would pay 5.5% sales tax on the monthly payment rather than the cost of the car in total. For instance, when purchasing a $30,000 vehicle your tax expenditure would be $1,650; to lease that same vehicle would equate to roughly $25 per month in taxes, a significant savings.

Do I want to avoid risk of diminished value? 

If you were to hit a deer and the vehicle needs excessive body work, that information will be reported to CarFax via your insurance company. if you own the car and want to sell it, having a major accident listed on the CarFax report will be a red flag to any potential buyer and may need to offer the car at a significant discount to facilitate the sale of the vehicle.

Is access to credit important to me?

When purchasing a $30,000 vehicle and finance the amount the full $30,000 loan obligation listed on your credit report. A lease will show for only the sum of the payments, usually less than half that amount. So when looking to get another loan for a mortgage, home equity line of credit, etc, you'll have that much more borrowing capacity.

Do I want to avoid the trade in process?

When leasing you will receive a guaranteed purchase price, up front, before you ever decide to lease. At the end of your lease term simply turn in it in for a brand new lease or buy the rest of the car for that amount if it still fits your needs or you'd like to pass a safe and lightly used vehicle to a family member.