I’m ready for an upgrade. Should I buy or lease?

Answered by Jim Manelis, car enthusiast and Chase Auto Executive

There's a lot to think about when considering whether to purchase or lease your next vehicle. Consider the following when you're deciding which option best fits your lifestyle, finances and what you're looking for down the road.

First, understand how you plan to use the car. Be clear on the car's purpose and your financial goals, then think about your options

• How much do you drive?
  •  Do you drive for business or frequently visit family who live hours away?
• How much do you have for a down payment?
• How long do you like to keep a car?
• What are your other financial goals?

Lease vs. Loan

Stay flexible with a Lease

• Choose the latest vehicle models with updated technology every 24 to 48 months.
• You may have lower maintenance/repair costs.
• When your lease is over, you can choose between buying the vehicle and trading it in for another.
• You may have a lower down payment because you're only financing the depreciation that occurs during the lease term, which is typically 36 months, plus taxes and fees.
• Lease agreements typically have a set number of miles included annually; if you drive over that amount, you may need to pay to add more miles.

Potential ownership with a Loan

• Each payment you make gets you closer to owning your vehicle.
  • When the loan is paid off, you own the car outright.
• Unlimited mileage lets you drive where you want, when you want, without worry.
• You enjoy the benefits of the trade-in value, cash value or resale value.
• There are no charges for excessive wear and use, although scratches and dents may lower the trade-in or resale value.
• The vehicle is yours to customize as you please.