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Need a Car? Should You Lease or Buy?


 

"When money talks, nobody notices what grammar it uses."


-Unknown

 

If you live in the United States there's a really good chance that you need a car. Obviously, there are some people who are able to get by strictly on public transportation, walking, biking, and taxis, but for most of us we have to have a vehicle. The decision to how best to secure your vehicle is often under-examined. 


Should you buy or should you lease?


lease versus buy decision

3 Ways to Get a Car


There are basically three ways you can get your hands on a car, and two involve buying it. The first is to buy it with cash. The second is to buy it with a loan. Lastly, you can lease it. I'll talk about each of those below.


Buying with Cash


The first option is the most straightforward. You buy the car for cash. You can do this at a dealer or privately. You quite literally pay cash to the previous owner and they give you the car. 

Sometimes we have enough cash in savings because we were saving for a car and sometimes we withdraw money from an investment account, but hopefully in either case you were planning for your car purchase. 


Easy. It's a simple transaction that looks like this...