Nearly every United States household owns a car. We need cars to quickly travel to work, university, the park, chauffeur kids around, go grocery shopping; virtually anything you can think of. Since most of us need cars, not just want them, we must weigh options of purchasing a truck, SUV, sedan, or other type of vehicle based on our planned usage. Next, we must figure out how to obtain that vehicle: do we rent, outright purchase a new vehicle, finance a new vehicle; do we visit a dealership, or a private party; and the list goes on, and on, and…
Because motor vehicles almost always depreciate quickly, purchasing vehicles makes little sense to anyone without high disposable incomes. Few people want to purchase old, significantly used vehicles as they require regular maintenance and have strong chances of breaking down. So, what avenue does someone in need of a vehicle pursue?
Leasing a car is undoubtedly the most time- and cost-effective option. There are many benefits of leasing a car as compared to buying a car. Here are several reasons why car leasing is superior to car buying:
Car Leasing Is Significantly Less Expensive than Buying
Outright purchasing a newer-model vehicle is expensive, just as financing the purchase of a vehicle is. Leasing a car costs less than either of the aforementioned two options, in reference to overall cost or each monthly installment.
Unlike buying a car, leasing a car does not require a down payment. Sometimes leasing does require a small security deposit, but no matter how you slice it, leasing’s monthly installments and down payments are much cheaper than car buying.
Leasing a Car Requires Little to no Maintenance
Car lease terms are often short, usually one calendar year at the longest. Many leases last around six months, with options offered to lessees to renew if they so choose.
Lessees often find that lease terms end before any major repairs not resulting from the lessee’s negligence are required.
Also, dealerships make certain to fully service their for-lease vehicles to keep them in tip top shape with long running lives.
Leasing Commonly Results in a Better Car than Buying One
The price of car leasing is much lower than purchasing or financing a car of the same make, model, and condition. As such, lessees are likely able to afford a far nicer car though leasing as compared to purchasing.
Those who lease vehicles are less likely to maintenance the cars themselves than those who purchase them. Because lessees are not necessarily required to perform maintenance themselves, dealerships often require lessees to submit their car every few months for regular maintenance. For which dealerships understand the onus of maintenance and repairs is on their, the lessor’s, shoulders, they commonly perform thorough maintenance whenever possible.
As you can see, leasing comes with the benefits of more affordable newer, nicer cars, and leased cars being more likely to perform more effectively and run smoother than purchase cars.
Lease Terms can be Modified to Suit Lessees’ Needs
Purchasing a car comes with full rights and obligations, which matches the hefty price paid for the car. Leasing usually has a number of restrictions, such as mile limits and other requirements.
Car buying does not require adherence to a contract. Because leasing does require this, terms can be modified to save lessees money. For example, a lessee interested in leasing a car only to drive back and forth to the grocery store may be able to save lots of money by modifying the contract to allow for a low set mile limit.