Leasing and buying cars offer the same end result: obtaining a vehicle for personal or business use. Many people are uninformed about what leasing entails, and instead opt to purchase or finance a car. Buying cars is undoubtedly many times more expensive than leasing them, and still, consumers often opt for buying over leasing.
Here are several of the most prominent benefits of car leasing, often forgotten by or are unknown to vehicle shoppers.
Leasing is Significantly Less Costly
Buying a car has the strong potential of breaking the bank. Many think that in order to obtain a new or lightly-used car must be expensive, although that is not always true. Financing or buying a car pays for the entire value of a vehicle.
Leasing, on the other hand, only pays for the value of vehicle used. For example, if a car is worth $30,000 and, after two years of regular driving, the same car is worth $22,000, then the lease would cover the realizable difference of $8,000.
Financing a car also comes with the responsibility of submitting a cash down payment to the lender or dealership. This down payment is most always not refundable. Leasing a car does require a security deposit, far smaller than a standard down payment. Both leasing and buying include fees, taxes, and other costs incurred by dealers. All in all, leasing is far more cost effective than financing or buying a vehicle.
Leasing Facilitates the Use of Better Vehicles than You Can Afford
Most people, unfortunately, cannot afford to outright purchase new vehicles. As the majority of the price paid in leasing is the realizable difference, consumers are able to take out leases for vehicles they could otherwise not afford.
The value of leases is based on the price paid for cars. The first year of use is more valuable than the second, the second is more valuable than the third, and so on. To find the most affordable deals on high quality, luxury vehicles, seek out models in their third year of life or older.
Upkeep Responsibilities are Deferred to the Lessor or Dealership
Outright owning a vehicle does come with the liberty of doing whatever one wants with it. However, vehicular ownership is paired with the onus of making repairs, changing oil, general upkeep, and large, important repairs as well. Owning a vehicle doesn’t sound ideal now, does it?
When leased cars incur problems are or due for regular maintenance, lessees return the car to the dealership or dealership-approved mechanic shop for repair. Lessees are not held liable for costs incurred in repair or upkeep, a top advantage of utilizing car leases.
Vehicle warranties are not lifelong, and usually end within the first few years of use. Manufacturer warranty is nice to have because they will replace any dysfunctional parts or systems in your vehicle for no cost or labor required.
Leased vehicles are always subject to such warranties. Owned vehicles, on the other hand, are not always under protection from warranties.
If a problem occurs with a leased vehicle, contact the dealership and manufacturer to learn where to report your car for repair.
As detailed, there are many upsides to vehicle leases. Vehicular ownership does come with free reign of the owner, but is burdened by comparatively exorbitant costs and responsibilities for repairs and maintenance. Car leases are by far a better choice than buying cars outright.