The answer is simple, but it’s different for everyone. Drivers who spend ample time on the road racking up the miles and driving cars until they fall apart might not find a lease nearly as beneficial as someone who lives and plays close to home. Leases offer drivers a chance to save a lot money for a lot of great benefits, but the mileage you are permitted to put on the car is limited. The standard lease comes with around 12,000 miles annually, though you can talk to the dealer to negotiate more miles if you want to pay a small fee each month. Long-distance drivers and leased vehicles don’t make a great combination. It’s a form of financing better left to other drivers.
The Financial Benefits of Leasing
It’s more affordable than traditional financing. You’re still financing your vehicle when you lease. You apply for credit and your credit is checked. You’re approved, you’re given an interest rate that reflects your credit score, and you are able to negotiate terms. Once you’re approved, you find out what you’re paying each month to drive your lease. The payment on a lease each month is substantially smaller than the payment you make when you buy a car.
This is simple. You’re paying full price to purchase a new car, but you’re not paying full price to lease it. You’re only paying the portion of depreciation the car loses when you drive it home. This means you get to pay a much lower monthly payment, and you don’t have to pay nearly as much sales tax. There are also fewer fees associated with driving a lease than a purchased car.
One of those benefits might be free basic maintenance. When you return your lease to the dealer at the end of your term, they will turn around and sell it as a gently used vehicle to someone else. They will charge a lot of money for it, and they want that vehicle in perfect condition. This means you sometimes find the dealer is willing to offer free maintenance so you’re more likely to keep up with it.
The Fun Benefits of Leasing
Most people want to lease because it’s more cost-effective, but it’s also more fun. When you lease a car, you get a much cooler car. You’re free to choose whatever you want to drive, but most people are excited to learn their favorite luxury cars are in their budget with a monthly payment much lower than anything they’ve ever driven. Not only do you get to bring home a new car, you get to bring home one that’s a little more exciting.
The other thing you might really enjoy about the lease process is driving a new car every few years. You typically lease for two to three years, which means you get a new car each time your lease is up. Doing this prevents you from ever driving an old car, and it always allows you to drive with the peace of mind your car is too new to have major issues. If it did have a major issue, you have all the warranties the car comes with when you purchase.
The Stress-Free Benefits of Leasing
One of the most stressful things about buying a new car is trading in the old one. The dealer never wants to give you what you want, and what you need is almost always more than what you owe. This means you’re upside down, financially strapped to your current car, and you might make some poor financial decisions just to get out of it. Rolling the excess into a new car is one of those poor decisions you’ll no longer make when you lease. When you’re done, you’re no longer financially responsible for this vehicle.
Leasing might not seem to be what you want to do, but it’s something that will save you tens of thousands of dollars over the years. You’ll drive nicer cars, newer cars, and you’ll never be turned down due to a poor trade when you go to get a new car. It’s more affordable, and it’s beneficial.