When it comes time to get a new car for yourself or your family, you have the option of buying a vehicle or leasing one. Though some people will tell you that buying is the best option, there are a number of circumstances and times when leasing makes much more sense. You should consider factors like the down payment you have available, how long you want to use that vehicle and how often you drive regularly.
Buying a new car usually requires that you put a down payment down that is equivalent to between 5% and 10% of the total purchase price of that vehicle. Depending on your credit history, the dealer may ask for an even higher deposit. If you have your eye on a car in the $30,000 price range, you typically need at least $3,000 down. With leasing options, you can walk away without making any type of down payment. If there is a down payment required, it will be much less than it would take to buy a car.
A manufacturer’s warranty covers things that might go wrong with the vehicle in the future such as a fuel pump that stops working or a malfunction in the engine. This warranty may last for as little as one year after your purchase, which puts you in the position of paying for any repair costs out of your own pocket. When you lease a car, you will often get a warranty that lasts longer and one that will protect against things that happen outside of your control.
Very few people start looking for a car or visiting dealerships without first coming up with a budget regarding how much they want to spend. With a smaller budget, you may look for ways to cut costs, including buying a car that is a little older than you would like or skimping on the features that you can get. Instead of driving a car that is older, you can sign a lease that lets you drive a newer model than you could afford to buy.
Are you the type of person who likes driving newer models but dislike the idea of buying a brand new car every few years? Leases generally last for a minimum of three years up to a maximum of five years, though you may get a lease that runs for one year or six years or longer. At the end of your contract, you can take that car back to the dealership and sign a new lease that lets you walk away with a brand new car.
One of the biggest hassles associated with buying a new car is that you need to decide what to do with your old car. Many people will trade in their old vehicles and put the cash given towards the down payment on a new model. Leasing a vehicle lets you avoid this hassle. The trade in process makes it easier for you to get a newer car without experiencing any of the common frustrations. Some dealers will give you the option of paying more and buying the leased vehicle outright too.
Maintenance is a common part of owning a vehicle. You’re responsible for tire rotations, oil changes and everything in between. When you lease a car, the dealership will often help you with some of that maintenance. Techs can schedule future appointments for oil changes and all the other maintenance that the manufacturer requires. This keeps the motor in good shape and ensures that you don’t face any fines or charges when you turn the car back in later.
Though buying a car is the best choice for some, leasing a vehicle is an even better option for some shoppers. If you want to walk away with a car that costs more than you could otherwise afford to spend and put down less upfront, leasing is a good choice for you.