Is Leasing Right for You?

If you’re in the market for a new Dodge you may find yourself wondering whether it would be better financially to lease or buy. Both certainly have their advantages and disadvantages and making the final decision can put you into quite a bit of a quandary. The important key when making this type of decision is to consider all the factors as well as your lifestyle choices to determine whether leasing or buying would be best for you and your situation.

One of the main advantages of leasing upon first glance is a cost savings one. There is no denying the fact that on a per month basis leasing a new Dodge can be much less expensive than buying one outright. If you’re shopping on a budget as most families and students are today this can be a strong point in favor of leasing.

Before you make a final decision; however, it is important to delve a little bit deeper and understand your own needs as well as any other additional costs that could apply to the lease agreement. For example, always make sure you know exactly which Dodge model is included in the lease. For the most part, it will usually be a base model with a manual transmission. If you have no problem driving a stick shift and don’t mind the absence of a few amenities and options, this can turn out to be a good deal for you. On the other hand if you need an automatic transmission and/or want those extra features be prepared to pay more than what is advertised in the lease offer.

Your lifestyle choices can also play a role in whether leasing or buying would be right for you. Think about how many miles you tend to drive in an average year. Most lease agreements contain a clause that states you cannot put more than a certain number of miles on the vehicle without facing a penalty at the end of the lease term. For most agreements this is about 10,000 miles per year even though the average driver puts at least 15,000 miles on their vehicle in any given year. The simple fact is that if you drive a lot a lease agreement not turn out to be such a financially good deal.

How much do you plan to put down? Yes, there is usually a down payment required for a lease agreement and it may fall in the neighborhood of $4,000 or more. If you have a trade-in this could be easily taken care of depending on the condition of the vehicle but do be aware that you are trading in a vehicle you own for one you will only be leasing. At the end of the lease term you will need to replace that vehicle or be left with nothing.

Finally, don’t forget to think about how long you might realistically want to keep the vehicle. For individuals who like to drive a new car every couple of years, over the long term leasing can make a lot of financial sense. You get to drive a brand-new car practically all the time for far less than you would normally have to pay. On the other hand, if the idea of paying off a vehicle and keeping it appeals to you, leasing might not be the best option for you.

Be sure to take all of these tips and guidelines into mind before you sign on the dotted line of a lease agreement. While leasing can provide a number of advantages it may not be right for everyone.