Thursday, October 10, 2002
More Bang for Your Buck: Leasing vs. Buying
Living in South Florida, we spend way too much time in our cars. But when it comes to getting a new ride, you must decide between leasing and buying.
(WSVN) When it comes to purchasing a new vehicle the big question is ..do you buy or lease?
Miriam Blanco-Valdez has done both.
Miriam Blanco-Valdez, a car buyer, says "We buy for our children because we dont know how many miles they are going to put on their car, the car is a long term event for them."
However, when it comes to her own personal ride, Miriam takes a different approach.
"9 times out of 10 i'd rather lease than buy..because I find that I get alot more car for my money..the monthly payments are very reasonable, I dont like to keep my cars very long."
Now, if you're stuck in neutral between buying and leasing, don't drive yourself mad. Just consider your options. If you turn toward leasing, you don't have to pay as much up front. If you turn toward buying, you have something to trade in.
Auto broker Karla Cooper is very familiar on when to give a deal the green light.
She sees leasing as better for people who see their car as a status symbol.
"They want to be out of their car every 3 years."
"They want more car for their money."
They also have to be concientious of the odometer. Life is not an open road for people who lease.
"You do have mileage contraints, there are 2 programs typically a 12 or 15 thousand mile lease."
And it can get ugly if they're scared of commitment.
"Leases are typically contracts..and they are difficult to get out of."
And that's what make's buying so attractive. Your options are less limited.
"If you buy the car, you can sell the car at any time, pay off the loan, and you're out of it."
And unlike leasing, there's no limit for excess wear on the vehicle.
"You have ownership of the car. its yours."
Plus your guaranteed to pay less on an insurance payment.
"If you buy the car, you can have the minimum coverage required by the state."
Miriam knows buying and leasing have their advantages and disadvantages.
But she also knows another secret: Miriam suggets buying a car now to take advantage of the year end sales.
"I look for quality a car that looks good and will give more bang for the buck."
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