Should I Lease a Car? Everything You Need to Know
Are you in the market for a new car? Are you wondered how you are going to pay for it? Have you heard something about leasing vs. buying but you don’t quite understand all of the terms?
If you answered “yes” to any of these questions, then read on to get our expert tips. Many people think buying a car is the only way – but it’s not. Leasing is a viable and often a cost-saving choice for many people who want to get into a new car quickly. The popularity of leasing is growing as well, with nearly 30 percent of the car industry and nearly 70 percent of the luxury car market being leased. Read on to learn everything you need to know to make a decision about your next Jeep:
Tip #1: Do You Have a Downpayment Saved?
If the answer is “no,” then leasing could be a better option for you. Today’s car dealerships typically require about 10 percent of the purchase price as a down payment on the car. For a $50,000 car, that’s an instant $5,000. But if you don’t have that, then you either need to finance the downpayment, work out a deal with dealership, or consider a lower-cost option like a lease.
Often leases do not require down payments, or if they do, they are much lower than the downpayment for buying the car. This is something to consider when you are short on cash. It makes it a little easier to get into a car — even if it is for only a short amount of time. Your lifestyle and circumstances can change and you may be able to afford a car later. Leasing could be a nice option to buy you some time.
Tip #2: Do You Want a Lower Monthly Payment
Car dealerships make leasing a sweeter deal for the consumer by offering monthly payments that are significantly lower than payments on car if you purchased it. Often, leased payments are up to a third lower than car payments, so over time, you pay less for the leased car than you would a car you purchase — if you choose economically.
Keep in mind, however, that while you have the opportunity to purchase a car at the end of the lease, you are not making payments to own during the lease. The car is the property of the dealership with a lease. Once you turn in your leased car at the end of the contract, you can talk with your dealer about going through the steps to finance the car.
Tip #3: Get a Sweet Deal on your Taxes
For drivers who use their cars frequently for work, buying and leasing presents an interesting conundrum. First, did you know that you can write off a percentage of the leased car’s depreciation value on your taxes? That’s something you can’t do with a car you are buying.
Now, something to keep in mind if you use your car frequently for work travel: A leased car will usually have a mileage limit, and if you go over that limit you’ll pay surcharges per mile when you turn it in. To save money, negotiate those terms at the outset of the lease or keep a hawk-eye on your mileage.
Tip #4: Get the Latest Car with All the Bells and Whistles
At the end of the day, if you enjoy driving brand new cars, then leasing is a very attractive offer. Most leases are short-term so you can help ensure you stay in the most modern cars when you want to drive them. You can get the most recent Jeep models with the latest updates and drive them to your heart’s content — or up until the mileage limit under your leasing contract!
This is especially a great offer for drivers who like to drive luxury cars, as nearly 75 percent of luxury vehicles are leased that are out on the road. Get your brand new Jeep every two years with an affordable lease. Keep in mind, however, that you cannot customize a leased car. You have to like what you see enough to drive it. The good news is that all new leased cars have significant upgrades and please a lot of drivers.
Ready to Find Your New Car?
There is a lot to consider when looking for a new car and weighing the options of leasing vs. buying. But with a little research, patience and finding the right option for you lifestyle, you can save money and enjoy a new car every year. Talk to your Jeep dealer today to find out more about leasing your next car.