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Deciding to Buy or Lease a Vehicle

The question of should I buy or lease a car is commonly asked by many individuals looking to get a new vehicle. One particular applicant with this common situation went on stating he needs a new car and planned on joining the military this summer. He further explained that he will have around $2,000 in cash and $2,500 in trade-in towards buying a car and he wanted quick advice on how he should go about it.

While leasing a car is basically renting a car for a specific amount of time, you are essentially helping the bank, which owns the car, help to pay it off, but you are the one using it.

Once they get the vehicle back they then get to sell it and make even more money.

Getting a loan on a car is borrowing money in order to pay for the vehicle. This is a contract between you and the loan company. You are essentially asking the loan company to front you this money until you can pay them back. Getting a loan for a vehicle is a smarter way to go, because you retain the residual value of the vehicle and you will have the benefit of making some money in the end, instead of having to give it back.

Probably your best bet would be to buy a used vehicle and you will get the best use out of your money.