Deciding to get a new car is only half the battle. You must also determine how best to pay for the car in a way that fits in well with your personal and family budget. Many people only consider buying a new car, but there are benefits to be found with leasing a car that should be pondered as well. Leasing provides you with the advantages of car ownership, at a lower price and with much hassle. That is just the beginning, so let us now go over five advantages to leasing a car that you really should consider the next time you head out to look for a new vehicle.
Costly Repairs Are Avoided
The upkeep on a car can be a major expense to consider, particularly the more that the vehicle is driven. When you own a car outright, these repairs and maintainace issues fall on your shoulders unless you happen to be fortunate enough to have some of them be covered under a warranty of some sort. There are no such concerns with a lease. The dealership owns the car. As such, they have a vested interest in keeping the car in great condition so that they can then turn around and sell it at the end of your lease. Your car will remain new for the term of the lease, so the chances are slim that a major repair will even become necessary. If it does, you be covered under the manufacturer’s warranty.
Keep That Like New Car Feeling
If you like the look and feel of a new car, then you will love a lease option. With the average lease term running about three years, you will be getting ready for a new vehicle just about the time that the existing lease expires. This allows you to keep that like new car feeling for decades if you so desire, without ever having to worry about selling the car or taking care of major repairs.
Avoid the Dreaded Depreciation
Depreciation is an ugly word to most car owners, but it is nonetheless reality. While buy a new car does get your sole owenership over the vehicle, it is gives you possession of the corresponding depreciation. This basically means that your car will be worth considerably less the day after you buy it. Yes, you read that right. Some cars will even lose thousands of dollars in value once you drive it off the lot, so this is a hidden expense that you will need to take into account. However, depreciation is not an an issue when you lease a car because the dealership will bear that expense on their own.
Enjoy Lower Monthly Payments
Lease payments are typically much less than purchased vehicles. There are many reasons for this. To begin, there are finance payments to take into account when you buy a car. When you add in the interest and other fees, payments are typically much higher. In fact, you might find that you cannot get the car you want within the budget that you have for a new car. When you go to lease the same car, however, you will likely be surprised to read how low the payments are. You simply make those payments for the term of the lease and then turn it back in at the end. In fact, the higher value the car is at the end of a lease (referred to as residual value), you will find the payment is lower still. This is a great way to get more car for less money than you would if you were to buy it from the dealership outright.
Get Upgraded Models Every Few Years
With technology advancing so rapidly these days, vehicles out this year will not look the same as models coming out a few years down the road. If you are the type of driver that enjoys that latest options, leases are a great way enjoy each new evolution as it comes on the market. You just cannot do this when you buy a car as there is always the trade in value of the car to consider. With leasing, you can get a new car with the latest in added options with the end of every lease.
As you can see, there are quite a few advantages to leasing a new car that you might never have thought of before. What is important is that you take time to consider your own financial situation and what you are looking for in a new car. If leasing fits in well with those objectives, you might very well find that this is an option you definitely want to pursue the next time you head over to a new dealership.