By Steven H. Goldstein
Countless articles have been written comparing the benefits of leasing vs. buying a new car. Clearly there are benefits to both and ultimately it comes down to what works best for the individual. But having worked in the car business for over 35 years, I would like to contribute my two cents
If you are a CPA or write for a Consumer magazine, you do the math. Over the long run, you buy a car, pay it off and continue to drive it long after your loan… well it’s a no brainer. It costs less to drive a car with no payments. Right?
If you are the kind of driver who sees a car as nothing more than a way to get from point A to point B, then driving an old car may be right for you, but what do you give up when you keep a car for say 10 years?
1. Maintenance and Repairs
Maintaining an older car costs a lot more. According to Mechanic.com, the cost to maintain a car for the first 75,000 miles averages about $6,600. Some brands can run over $13,000.
Just about every new leased car comes with at least a 3 year bumper to bumper warranty, which is about the same term as the lease, so you pay for no repairs. A few manufacturers include wear items like wiper blades and even oil changes.
If your old car has a major repair, guess who pays.
Automobile manufacturers continue to make great strides in this area. New cars now offer countess technologies designed to reduce injuries from accidents or avoid them all together.
3. The Environment
Newer vehicles tend to get better mileage with less pollution and the movement towards zero emission electric cars accelerates every year.
4. High Mileage Driving
Leases make a lot of sense if you put on a lot of miles annually. This is especially true for cars used in business. Car dependability issues are pretty much eliminated by leasing a new vehicle regularly.
Now for the most controversial argument…
There is no logical argument here. If you enjoy driving and love the smell of a new car, there’s nothing like picking out a new car every three years. Just don’t be surprised if your CPA asks to borrow your car.
About the Author: Steven H. Goldstein is Managing Partner of the Goldstein Insurance Group and is a consultant to the Vantage Auto leasing group. Steve has worked in automotive marketing for numerous global auto manufacturers.
If you have questions about whether to buy or lease your next vehicle, you can reach Steve at Steven@goldsteingroupinc.com
You can also see this months lease specials at www.thevantagegroupauto.com