Car ownership can be a daunting and expensive endeavor, and for some, leasing may be the more feasible choice. But there’s also an option other than making a firm decision: first lease and then buy a car. To help you find out if this is the path you should take, consider the following factors and the pros and cons. Read on to find out why sometimes, buying outright might be a better choice in the long term. Plus, learn about another option: a car subscription, which gives you flexibility (as short as six to 12 month terms) and less stress (maintenance, roadside assistance and insurance are all included in one monthly fee). 

Leasing allows for easy access to a vehicle over a set period (typically six months to three years) through a simple monthly payment. At the end of the lease term, you can either hand the vehicle back or purchase it. 

Unlike owning a car, you never truly own a vehicle during a lease. However, it does offer flexibility and more affordable options for those who want to avoid owning a car. Ultimately, the decision to lease a vehicle is based on your individual circumstances and leasing then buying your next car could be a viable option.

If you have recently passed your driving test exam or want to experience the freedom of having access to a vehicle, then leasing a car may be for you. Here’s why: 

Pros

• Typically lower monthly payments compared to buying a car outright.
• Ability to upgrade to a newer car more frequently.
• No long-term commitment to a specific car, which could be helpful if you are unsure of your long-term car needs.

Cons

However, there are a few downsides to car leasing aside from not being the registered owner of the car:

• No equity built up in the car, unlike with buying a car.
• Restrictions on mileage and wear-and-tear can result in extra fees.
• Potential for higher total cost compared to buying a car in the long run, especially if you plan to keep the car for a long time.

For an alternative to leasing that also includes its pros and minimizes its cons, check out a FINN car subscription.

At the end of a lease, it may be worth considering buying the vehicle and becoming its official owner. It’s one thing to become familiar with and fall in love with the car you have been using for the duration of the lease. But there are other factors that you should consider:

1. Residual value 

The residual value is the estimated value of the car at the end of the lease term. If the car's residual value is lower than its actual value, buying it at the end of the lease may not be a good financial decision. However, if the car's residual value is higher than its actual value, buying it can be a good deal.

2. Car condition 

If the leased car is in good condition and you have been maintaining it well, it may be a good idea to buy it at the end of the lease. On the other hand, if the car has significant wear and tear or damage, it may not be worth the cost to buy it.

3. Extra costs 

When buying a leased car, there may be additional costs, such as a purchase fee, taxes and registration fees. If you are at the end of your lease, you should factor these costs into your decision-making process.

4. Financing options

You should consider your financing options when deciding whether to buy your leased car. If it’s possible to secure a low-interest loan or pay cash, buying the car may make sense. However, if the financing options are not favorable, buying the car may not be a good financial decision.

5. Long-term plans

You should consider your long-term plans for the car when deciding whether to buy it. If you plan to keep the car for several years, buying it may make more sense than leasing a new car. On the other hand, if you plan to upgrade to a newer car in the near future, buying the leased car may not be a good decision.

Leasing a car can be a financially viable option in certain circumstances, such as:

• If you are a business owner: You may benefit from leasing since you may be able to write off a significant portion of your lease payments on your taxes, which can help conserve capital and keep your business running smoothly. 
• Thinking about commitment: Additionally, if you're unsure if you'll need a car long-term, leasing can provide a way to get a car without committing to a long-term purchase.
• If you only need a car for a short period of time: If you have a temporary work assignment or summer internship and need a car, leasing can be a cost-effective option. 
• Want to drive a luxury vehicle: Luxury cars usually have a high rate of depreciation, which can result in a considerable loss of value over time. By leasing, you're only responsible for the depreciation during the lease term, rather than the entire life of the car.
• Lower interest rate: Leasing can also offer lower interest rates than financing a car purchase, especially if you have a low credit score. However, it's important to consider the terms of the lease and the costs associated with buying the car at the end of the lease term. 

Ultimately, the decision to lease then buy a car depends on your unique situation, and you should weigh the pros and cons before making a decision.

Leasing offers lower monthly payments and greater flexibility, while owning a car outright provides more long-term financial benefits.

If you're looking for a short-term solution and aren't sure about your long-term transportation needs, leasing may be the best option for you. However, if you plan to keep the car for a long time, buying outright may be the better choice.

Leasing and then buying a car can be a profitable option if you get a great deal on the lease and payoff amount. However, if you're not able to negotiate a good lease deal or don't plan to keep the car long-term, it may not be the best financial decision. Always do your research and consider all factors before making a decision.

FINN provides an easy car leasing experience with everything included in one monthly payment. Order online and have it delivered directly to your doorstep. 

It comes with zero down payment, insurance, registration, maintenance and protection against depreciation. And you have the option of 6 to 12 month leases on a variety of vehicles, including EVs. Browse a range of cars today for a hassle-free car leasing experience.

• Leasing a car can be a cost-effective option for those with short-term transportation needs or uncertain long-term plans.
• Business owners may benefit from leasing, as it can allow for tax write-offs and help conserve capital.
• High depreciation rates and low-interest rates can also make leasing a car a smart financial move.
• Ultimately, the decision to lease or buy a car depends on individual circumstances, including budget, long-term plans and lifestyle.