What do teachers need to know about leasing vs. buying a used car?

Teachers can weigh several factors to make an informed decision about leasing or buying a used car.

Leasing a Used Car

• Lower Monthly Payments: Leasing usually involves lower monthly payments than buying, as you only pay for the car’s depreciation during the lease term.
• Short-Term Commitment: This option is ideal for those who prefer to drive a car for a few years and then upgrade to a newer model.
• Mileage and Wear Restrictions: Leases often come with mileage limits and wear-and-tear charges if the car isn't maintained well.
• No Ownership: At the end of the lease, you must return the car unless you decide to buy it.

Buying a Used Car

• Ownership: Buying a car means you own it outright with no restrictions on mileage or usage.
• Higher Upfront Costs: Buying typically requires a larger down payment and higher monthly payments.
• Long-Term Value: The car is yours once the loan is paid off, offering better long-term value.
• Customisation: Unlike leased cars, you can modify the car to suit your personal preferences.
• Resale Potential: Buyers have the option to sell the car whenever needed.

Note: The decision between leasing or buying a used car depends on individual preferences, financial circumstances, and long-term plans. It is advisable to carefully evaluate both options with financial advisors based on personal needs before deciding.