Aaron, should you buy your next car or lease it?

It's really going to depend on your lifestyle. In basic terms, a lease is just like renting a car. You rent it for a specific period of time: 24 months, 36 months, 48 months. You're given a maximum amount of miles you can drive the vehicle each year, for example: 12,000 miles or 15,000 miles

What happens if you drive over the annual mileage allowance?

You get charged, on average, around 15 to 20 cents per mile over your allowance. Keep in mind that you are not charged per year, you are charge for excess miles at the end of the lease. For example – if you get 15k miles per year on a 3 year lease, then your total mileage allowance is 45k.

Who might be better off leasing a car?

Someone that only drives around 12k to 15k miles per year or less. Someone that likes to get a new car every 3 years, and someone that likes having a car that is always under warranty

Who might be better off buying a car?

Someone that drives over 15k miles per year, and someone that likes to keep their car for a long time.

For more financial related advice visit www.reliancewealth.com or e-mail Aaron.