When you look into buying, you quickly realize you still need to keep your mileage low to maintain the value of your vehicle. If you drive long distances and put many miles on your car every year, it’s only going to depreciate more and cause you to experience more issues selling it or trading it in. People want cars with low mileage, and they’re not looking to spend money on cars with high mileage. This keeps things in perspective, and it leads us into the additional benefits associated with leasing vs. buying.
The Financial Difference
When you buy a car, you finance the entire amount of the vehicle for a few years. When you lease a car, you finance a small portion of the vehicle for a few years. Typically, dealers ask you to pay the portion of the car that’s known as depreciation. Depreciation is the value the car loses the moment it’s purchased and driven off the lot for the first time. The difference is astounding, and it means you’re paying far less each month for a lease than a purchased car.
It also means you get to choose from a larger selection of vehicles. The dollar amount you can afford to spend on a monthly payment includes far more vehicles when you lease. Even luxury cars you never imagined driving because of the high price are now affordable as a lease. A bigger variety of cars to choose from, a lower monthly payment, and more savings is always beneficial to drivers.
The Stress Difference
Another big factor that makes leasing more beneficial than buying is the stress difference. Most people trade in their cars every few years for a new one. This means you wait for a dealer to offer you a trade-in price that works for you, but it almost always means you still owe money on your car because it’s not worth what you owe on it. This means you must come out of pocket with a big down payment on a new car to cover the cost of what you still owe on the old one, or you roll that additional money into your new car. Now you’re paying for part of your old car and your new car for another five or six years.
When you lease, you get a new car every two or three years. The difference is your old car is not a trade. You simply turn it in without any hassle, and then you choose your new car. You don’t owe anything unless you go over your mileage or allow excessive wear and tear to occur, and this means it’s easy and affordable to lease a new car.
Other benefits of leasing vs. buying include your warranties. You don’t drive a lease long enough or far enough to see warranties expire. This usually means your car never experiences many issues that require expensive repairs, and it also means you aren’t going coming out of pocket to pay for any that might occur. Buying a car is good if you drive long distances, but it’s more affordable, easier, and more enjoyable to lease. More people are trying it, and more people are loving the freedom they have with a lease when they finally get it home.