Own or Lease? Which one works best?
Updated: May 10
Owning one's car these days comes with some challenges about insurance coverage, service and warranty.
Let's briefly look into each with an understanding that more people now have bought a car, while in the past they simply rolled into a new lease. Times have changed.
Let's start with one of the most overlooked expenses, insurance. When leasing your car, the manufacturer requires certain levels of coverage to protect that car. But when you own your car, you have the ability to reduce coverage while still protecting yourself and the car. Liability coverage should never be compromised. However, if your car's value is depreciating, as most are these days, you may want to contact your insurance provider and reduce your comprehensive and collision coverage. Why overpay for coverage on a vehicle that's losing value daily?
Service and warranty go hand in hand. Ownership of your vehicle is here again different from when you are leasing. Chances are, unless you purchased extended warranty coverage on the car you own, it's already out of factory warranty. Typically the bumper to bumper coverage expires before the powertrain coverage, but both seem to end before you are looking to use them. Murphy’s law?
Speaking as someone who has never leased a car, I have always bought the protection of extended warranty. I take my car to the dealership on rare occasions and if warranty work needs to be done, while choosing a trusted mechanic to do the simple oil changes and tire rotations.
Oil changes on a regular basis are important, as well as tire rotations to extend the life of your tires. This simple routine accomplishes two functions: not only is your car being cared for correctly but having someone look at the car often usually prevents a major repair expense surprise.
Take a moment to consider what needs to change if you buy – rather than lease – your vehicle. And call me if I can help.