This is your car, but only for a specific amount of time as agreed upon during the lease process. You can have it two or three years, or you can choose a different term based on your desires when you lease your vehicle. When your lease is up, you turn in the car free and clear. You only pay the dealer if you exceed the number of miles allowed in your lease or if there is excessive wear and tear on the vehicle. When the lease is up, the car is no longer yours. You are no longer financial responsible for the car, and you get to choose a new car. It’s a simple process, and it’s one that’s financially savvy for most.
Leasing Comes With Less Cost
The way a lease is calculated is based on depreciation. When you drive a new car off a dealership lot, it depreciates significantly. It immediately loses thousands of dollars in value, and you don’t get that back. It immediately means you owe more for the car than the car is now worth, which is a problem when you want to trade it in or pay it off. With a lease, you pay only the depreciation as your monthly payment. This way the dealership gets the car back with the depreciation already paid for when your lease is up, and they can sell the car for what it’s worth to someone else.
There’s fewer fees involved in this because you’re not paying full price. You won’t pay as much sales tax, a down payment is rarely required and very affordable when it is, and you only pay fees if you don’t adhere to the terms of your lease. If you exceed the allotted mileage, you pay a per mile fee. If the car is damaged or broken in any way, you pay a fee. Otherwise, you pay nothing.
The Maintenance is Inexpensive
Most leased vehicles come with free oil changes and basic maintenance. The dealership needs to know they’re not taking a hit on this car and it’s being cared for. By offering these services free and clear to you, they know you’re more likely to have them handled when it’s time. You also have a warranty when you drive a brand-new car. This warranty will never expire while the car is in your name, because you don’t drive it long enough. This means you’re never responsible for expensive repairs and fees often associated with repairs necessary when a warranty expires.
You Always Have A New Car
When you drive a lease, you never need to worry you won’t have a new car when you want or need one. You know precisely when you will have a new car each time you go shopping for one. When your lease is up, you get a brand-new car from the dealer. Driving a new car every two or three years allows you to get what you want each time without the fear your car is going to experience issues as it gets older. You also always like your car because you don’t have time to stop enjoying what it has to offer as you drive.
Leasing is a great option for drivers who want more than they can afford. You might not be able to afford the monthly payment when you purchase a luxury car, but you can afford it when you lease a luxury car. It’s a solution for every budget, and it’s best for those who drive less than 12,000 miles per year. You can negotiate the mileage when you create your lease agreement, however.