Leasing gets a bad reputation, and no one is positive where it comes from. Growing up, adults today heard leasing was a terrible idea. It was too restrictive, it was a bad financial investment, and it didn’t work well for anyone. The only thing we can think of is our parents were just old-fashioned when it came to their finances. They were raised in a time when people didn’t always have much, and they kept and cared well for what they did have. Their own parents bought cars and kept them for decades, washing them carefully and treating them with respect. This is a much different time.
Historically speaking, families were more likely to drive their cars until they couldn’t last another day. They were paid off for many years, and families were able to put the money they once spent on a car payment into savings. Today, many drivers drive their vehicle for a few years and trade it in for a new one long before it’s ever paid off. People don’t keep anything this day and age, and that’s true of their vehicles.
This is a world when people want what they want, and they want it yesterday. It’s a technological world with so much change no one can keep up. You buy a new phone and it’s all but obsolete six months later when a newer, better, more tech-savvy version is introduced. You buy a car today and it’s got all the bells and whistles. In six months when the new model year is introduced, it’s going to lose its wow-factor and have fewer tech-savvy options.
This is why leasing is becoming more common. Drivers want cars they love, but they only love them for so long before they want to love something else. If you’re in the market to drive a new car every few years, save a lot of money each month, and drive something you never imagined was in the budget, you should sign a lease agreement the next time you’re in a car dealership.
The New Car Benefit
One of the biggest benefits of leasing is the new car aspect of this financing option. Leasing allows you to spend your time driving your car now, and it allows you to turn it back in and drive a brand-new car in two or three years. You barely have time to put any miles on the car or make it feel old, which means you’re always in new-car mode.
The Financial Benefit
Leasing allows you to take home a car for a much smaller payment. Buying means paying for an entire car. Leasing means paying for a small portion of an entire car. You’re essentially borrowing the car from the dealer and taking it home for a few years before you bring it back, and that’s how you’re charged. This is what allows dealers to offer high-end luxury cars for prices lower than what you pay for your used compact car without any upgrades or features.
The Safety Benefit
Driving a new car makes you feel a little safer. You’re less likely to worry you’ll break down, and you’re less likely to break down. You feel safe and comfortable in your car, and that’s a nice benefit to leasing. You always have a warranty to cover anything that might unhappen despite how unlikely it is a car this new will experience major issues in a few years or less.
The Luxury Car Benefit
Not everyone wants to drive a luxury car, and you certainly aren’t obligated to do so. If you want one, leasing is the way to get it. A car that’s always been way out of your budget otherwise might be precisely in your budget when you lease a vehicle. You can lease luxury cars for less than you buy regular cars, and that’s one of the most appealing benefits to consumers shopping for a new car and the financing to go with it.
The Trade-In Benefit
Few things in life are nearly as stressful as looking to find a trade-in offer that works for your current vehicle. If you owe more than it’s worth, you’ll come out of pocket with cash to pay it off or you’ll add the excess amount to a new car and pay on it for another five or six years. When you lease, you don’t trade-in your car when it’s time for a new one. You turn it in, and that’s that. The new lease process is simple, and there is no financial downfall to it.
Leasing is not what it was when your parents were growing up, and it’s not even what you heard it was when you were a child. Now it’s a beneficial way to finance the car of your dreams without sacrificing the budget.