It has been a busy week which prevented me from posting this week. After comparing quotes and discussing options, I signed a contract for a lease on a new car today which I will detail more about next week. I thought I would take a few minutes to point out a few thoughts I had about purchasing a lease and why.

Work History

Having a work history can mean a big difference in what your car payments. It was in my favor to purchase a lease now instead of after my relocation to York (which will happen by the end of summer under certain conditions).

Naturally, I would have to ensure I have a steady stream of income in York to ensure I can meet my monthly budget. All the same, by the time this lease runs out, I will have at least 2 years of work history in York which again will improve the odds in my favor should I decide on a new lease or a purchase.

By ensuring a seamless transition of income and a steady payment history, I will be able to continue to build a stronger foundation for the future.

Budget Item

I managed to negotiate a good lease on a nice, brand new Honda Civic with a warranty that will cover the terms of the agreement which is a 36 month, 60K miles.

At the moment, in my current location, up until now I did not have a car so I only had minimal expenses and only could guesstimate what my expenses would be when I relocate. Now that I have a fixed monthly amount for my monthly payment, as well as insurance, along with a few other regular payments, I can establish a stronger budget.

Credit History

This is probably the most important factor here. After working to rebuild my credit score the past year, it was time to take it to the next level with the car. While it is only a lease, meaning I will not have a loan on my credit report, much like a rental, it will show my ability to make monthly payments over the next three years which will help increase my history in good favor.

Lease Vs. Buy

Several factors affected my decision in this matter. I know the general consensus is that it is better to purchase than lease. The bottom line is any car you get, the amount of money you spend on that car is throwaway money. You will never get a penny of it back.

Life will be different three years from now when my lease end. There are many unknown factors about the future, especially when it comes to gas prices and car prices. Even the MPG has the potential to improve. Right now, I get 26 city and 32 highway which could degrade after the lease ends.

Who knows, it is possible, the newer models 3 years from now could get 32 city and 40 highway mpg.

What are your thoughts about car leases? Please note that if you have not purchased a car lease before, it is certainly a different mindset than a purchasing a car or taking out a car loan.