As car leasing becomes more and more popular, consumers will start to realize the benefits of leasing a car instead of purchasing one. In order to decide whether leasing is right or not for you, it is imperative that you prioritize what you need out of your car. Many automatically prefer leasing because they are able to drive the “car of their dreams” for a price that they would not normally be able to afford. Below are some of the best reasons that car leasing may be for you.
Zero Down Payment
When leasing a car there is a high chance you will not have to pay a down payment. Normally, customers are only required to pay the first down payment in addition to the tag and registration fees. There are a few cases where promotional lease deals will require those getting the lease to do a down payment in order to receive the deal. If you have great credit, there may even be a chance that you do not have to put anything down on the car. Most people find that they end of saving money in the long run if they lease a car. It is best to contact a financial advisor who can sit down with you and look at which option may be better. Chances are leasing a car will work out for you best in the long run!
Smaller Monthly Payments
When leasing you will normally have lower monthly payments than if you were putting down payments onto a car. Monthly payments can be anywhere from about thirty to sixty percent lower than a loan that someone purchased for the same model car or term. When you lease a car you are not expected to pay any extra money every month for ownership equity. If you ask, there is a chance you can get a “lease special.” Dealers may work with you on getting reduced prices in order to walk away with a car that day. Most lease agreements also have a fixed price payment plan. With a fixed plan you will know, and be able to plan, exactly how much you will need to pay towards with car every month.
Smaller Tax Impact
Throughout most of the country, as well as Canada, you are not required to pay a sales tax on the whole value of a leased vehicle like if you would have purchased it. Customers are only taxed on the part of the value that is used during the time of your lease. The tax fee is spread out and paid with the monthly lease payment, instead of being paid in a large lump some at once.
There are many people that enjoy the lease because the term of a lease usually parallels itself to the length of the manufacturer’s warranty. If something happens where the car needs to be repaired, the costs are guaranteed to be covered. There are even some companies that offer those leasing their cars free maintenance appointments throughout the lease. Because new cars are leased in most case, drivers do not have to worry about the normal problems that come with purchasing a used car. After the lease is over you can easily hand the car back to the dealer unless you have the want to buy or trade it.
Stay Up to Date with the Latest Cars
If you are a car fanatic or love having the latest technology, then leasing a car is a great option for you. With leasing, you can drive the newest cars every few years without getting locked into a commitment. Leasing a car opens up a wide range of the possibilities of types of vehicles for you to drive. Because you are driving a newer car when leasing, you get to benefit from the different fuel economy technology, safety, and any newer performance advancements.
If you are still confused about whether leasing a car is right for you, see your local car dealer today. They can sit down with you to discuss your options and which will fit your lifestyle better. There are also “lease or buy” calculators available online in which you can figure out which option will best fit your situation financially.