Why I'm Leasing a Car, Even Though I Can Afford to Buy One

Image source: Getty Images

My brother and I used to own an old Ford F-150. It was cheap, and if we crashed it into a thick concrete pole (it only happened once), we didn't have to worry about giant repair bills -- we just kept driving the old clunker until one scary day, the engine gave out in the middle of traffic. It was a dignified end to a vehicle that managed to putter on for nearly twenty years past its prime. It also taught me some crucial lessons about car ownership.

Four years and a job later, I can afford to buy a better car. Despite that, I'm leasing. Here's why.

Discover: This credit card has a rare $300 welcome bonus

More: These 0% intro APR credit cards made our best-of list

Leasing fits better into my long-term financial plan

I'm leasing a car because I remember how much owning an old car sucked. Despite saving us wads of upfront cash, there are costs to owning vehicles for longer than the traditional three-year lease. Leasing is more affordable right now. And as long as I stick to my long-term financial plan, it will continue to be cheaper in the future.

Leasing generally requires lower monthly payments

You only pay off the vehicle's depreciation, not the full-sticker price (plus interest and fees). As someone who came straight out of college with limited funds, I appreciated this option because it gives me extra cash for rent.

Leasing gives me the option to purchase my vehicle upon the expiration of the lease

Many things can change in the three-plus years after beginning a three-year lease. Gas prices have skyrocketed, and the cost of used and new cars is wobblier than a bowl of poked Jell-O. Because leasing gives me the freedom to return or buy my car when the contract expires, I'm not worried about going through the hassle of selling my car in a bad market.