Whether to buy or lease? This is the dilemma that confronts every automobile consumer: It is often difficult to determine whether you should pay to own, or, make monthly lease payments instead. Now, unfortunately, this is one of those common dilemmas to which there is no perfect answer. In truth, each option has its benefits and drawbacks, and it can depend on your particular set of financial and personal considerations.

For example, affordability is clearly a key consideration -- you should consider job stability, and the state of your general personal finances. For the most part, the short term monthly cost of leasing is much lower than the monthly payments when buying a car. When leasing, you largely only pay for "the portion" of the vehicle's cost that you consume during the time you drive it.

However, if you have some cash up front, you may be able to afford both the down payment and sales taxes on a car. Then, you may be able to get a loan and a good interest rate, so that you can buy the car. When you buy a vehicle, it effectively gives you ownership of it, and a certain degree of freedom that you don't have with a leased car or truck.

On the other hand, If you want to drive a luxury model, but are unable to afford the down payment and credit terms, you are a good candidate for a lease. Unlike purchasing, it affords you the option of not having to deliver a down payment. As well, your monthly payments will be more affordable for your budget.

Be wary, however, because leasing benefits come with a price to pay! For instance, terminating a lease ahead of time or defaulting on your monthly lease payments, can result in stiff financial penalties and ruin your credit. You must be certain that you have monthly lease payment that are within your budget for the foreseeable future.

Aside from financial considerations, your decision to buy or lease should be influenced by lifestyle choices and preferences. Think about whether you are the sort of person that bonds with a vehicle? Do you see yourself owning the same car for more than five years? Perhaps you would rather change cars often, and move from lease to lease? If you want to drive a car for more than fives years, it would probably pay to negotiate a deal carefully, and to buy the car.

Finally, consider carefully, your transportation requirements. How many miles or kilometres do you drive a year? How well do you generally maintain your cars? If your yearly mileage is high, for example, then you are probably better off buying a vehicle. If you only drive 12,000 to 15,000 miles a year, or 15,000 to 20,000 kilometres, yearly, then you are a good candidate for leasing. Otherwise, unless you can keep within the appointed mileage limits and maintain the car well, you might incur hefty end-of-lease costs.