Buy vs Lease Car Analysis Template
Download this Buy vs. Lease Car Analysis Template in MS Excel Format to help you do your Car Lease Analysis easily.
Everyone wants to own a personal car to save on regular transportation costs. Buying a car is an important financial decision to buy a new car for you because it is a major financial commitment. There are two ways to own a car, one is to buy in full cash if you want to make your equity, and the other is to get it on lease. Buying and leasing are two major options to get a new car and both ways have their benefits and drawbacks. While buying a car, you have to pay the full purchase price in the form of a check or cash. You can also get a car via long-term financing through a bank or automaker’s financing arm. A lease is a long-term rental agreement in which the driver is responsible for making monthly payments for around three years. At the end of the lease period, the driver should return the car to the dealer.
Similarities of Buying and Leasing
There are some common things in the buying and leasing of a car, especially in the case of long-term financing. In both cases, the driver makes a down payment which is usually subtracted by the dealers of the car before computing monthly payments. In the case of the lease, the drivers should make monthly payments for the purchase or lease to avoid late penalties and possible repossession of the vehicle.
Benefits and Drawbacks of Buying and Leasing
Buying a car means you are building equity for yourself and the buyer will own the car after the end of the payment term.
People who get the car on a lease can drive a relatively new vehicle always but they cannot get ownership of their car and cannot sell or trade their vehicle. Leases come with a mileage limit and drivers who exceed the limit usually between 10,000 to 15,000 miles in a year have to pay additional mileage fees.
Here is a preview of a free Buy Vs. The Lease Car Analysis Template was created using MS Excel,
Costs of Leasing and Buying
In leasing and buying a car, the same vehicle is available for buyers and leasers with two different price tags. Auto dealers include a buyout price in each lease agreement that allows the driver to purchase the car at the end of the lease. This amount can be comparatively higher than the fair market value of the car at that point. Buying a car can be less costly in the long run as compared to leasing but in this way, you have to drive the same car for a longer period.
The lifestyle of Buyer and Leaser
The decision to buy and lease a car can be based on the financial status and lifestyle of the driver. People who want to drive a new and stylish car every year have to afford the heavy cost of a lease.
On the other hand, if you are satisfied with the same car for an extended period and want to build equity then you can buy a car instead of taking it on lease. It will be beneficial for you and save additional costs.
Here is the download link for this Buy vs. Lease Analysis Template,