– How long do you keep your cars when you buy them?
– How many times have you traded in a car you owe money on for less than what you owe?
– How many times have you put yourself in a financial situation you weren’t entirely comfortable with to buy a new car?
– Are you really driving the kind of car you want to drive?
There is a point to these questions. If your answers above indicate you don’t keep your cars long enough to pay them off and own them outright, you’re wasting a lot of money on the buying process. It’s long and arduous, and you’re paying too much money for your vehicles if you’re not leasing. When you buy, you pay the full price of the car. This means your car is automatically worth much less than you owe on it when you drive it off the dealer’s lot. It’s difficult to get out from under this financial strain since cars depreciate quickly.
Let’s say your current car is three-years-old. Your warranties are expiring soon, you’re reading for something a little different and newer, and you still have another three years of payments to make. You go to trade it in only to find out you owe $20,000 on your loan and your car is only worth $15,000 for a trade. You now have to pay of the additional $5,000 on your own, or you let the dealer pay it off and add that $5k to price of your new car. Now your new car has a much higher monthly payment, and it’s no longer within your budget.
You can walk away with your old car, or you can take the higher payment and hurt a little more each month as your financial situation becomes worth. If you want to avoid this situation, you could simply lease your next car. The benefits are stellar.
No Trade-In Hassles
When your lease is up, you turn the car without any hassle. Unless you exceed your miles or cause a lot of wear and tear to the vehicle, you owe nothing when you return the car. The payments are done, and you are not financially obligated to this vehicle anymore. You get to walk the lot, choose a new car, sign the paperwork, and walk out with your new car and a new lease agreement without making any down payments, without taking on huge monthly payments, and without doing any negotiating.
It’s Affordable Compared to Buying
Leasing a car is cheap because you only pay the depreciation portion of the vehicle. It’s so much less expensive than paying for the entire vehicle, and you get to make much smaller monthly payments. This means you can afford to buy a much more expensive car. Who knew you could drive away in a luxury SUV for the same monthly payment you’d be making if you bought a new Kia?
Another aspect of affordability is the warranty portion of your new lease. You won’t run out of warranty because the car isn’t yours long enough for it to expire. New cars tend to run well for many years before issues begin to arise as pieces and parts get older, so it’s unlikely you’ll have any issues with it anyway. On the off chance that you do, you’re not responsible for making the payment on any repairs when your warranty covers it.
You Aren’t Stuck With A Car You Don’t Care For
The other great thing about leasing is you’re not stuck with a car you don’t like. By the time you are ready to get rid of it, your lease is up or close to it. This means going in ahead of time to choose the car you want when your lease is up, and it means making the process that much faster and simpler. You always have the car you want sitting in your garage.
If you’ve not realize the benefits of leasing a new vehicle, now is your chance to make the better financial decision. The financing process if very much like that of the buying process, but you get to bring the car back when it’s time to get a new one and drive off with a smile. It’s a happy process, and it’s one that benefits almost everyone.