The majority of us need a good, reliable car to get around. Even if you don’t work outside the home and commute, you’ll still need a vehicle to get to stores, schools and to your children’s activities. When looking to get a car, you essentially have two options available to you: leasing or buying. Both have their pros and cons, but a lot of people are now seeing the true benefits of leasing their vehicles as opposed to going through the hectic buying process.
What is Car Leasing?
Car leasing is a short-term contract that you’ll sign to drive a vehicle. Unlike buying where you pay the full amount of the vehicle and deal with depreciation, leasing enables you to rent the car that you need and get another one when the contract is up. You can liken car leasing to renting an apartment. If you’ve ever rented an apartment, you know how nice it is to have a cozy place to live without the worry that you’re responsible for everything and anything involved with maintenance and long-term care of the residence. The same can be applied to leasing a vehicle when compared to buying it.
Benefits of Leasing vs Buying
Here are just some of the benefits of leasing a car vs buying one outright:
Lower Monthly Payments -Because you’re not buying the vehicle and taking out a loan that is divided up into monthly payments, a lease offers lower payment options that are often more affordable for busy families. You’re only paying for the time you’re actually going to be leasing the car, so the full value of the car is not taken into consideration when calculating how much you’ll pay.
No to Low Down Payment -Most leasing options require either no down payment or a low deposit that is affordable and non-problematic. This is ideal for the budget-savvy family that doesn’t necessarily have a lot of money saved up for the down payment of a car.
No Headache of Taking Out a Loan -Let’s face it, taking out a loan for a new car can be a literal nightmare. By the time you find a bank or lender willing to take you on as a client, you’re paying a high interest rate and are locked down into a seven-year contract. Leases don’t require loans and you’ll never have to worry that you’re locked into a contract that is longer than the car is even worth.
Get a New Car Regularly -Leasing allows drivers to choose a new car as often as their contract expires. Let’s say that you signed a two-year lease on your current vehicle and have found a car you’d love to have. After those two years are up, you have the option to get the exact car that you want. If you had purchased your vehicle instead, you probably won’t even have the car paid off after two years, and you won’t have the ability to buy that new vehicle.
No Worries Over Expensive Repairs -Because most leases are for two to three years, the vehicle will often be covered under the manufacturer’s warranty during this time. This means that major repairs and problems can be fixed for you at no cost to you or for an incredibly affordable price.
More Flexibility -Leasing offers much more flexibility than buying a car. It’s similar to when you buy a house and are then tied down to the property for decades to come. Even if you want to move, you have to go through the headache of selling the house, dealing with closing costs and taking out another mortgage. When you buy a vehicle, you’re stuck to that car for years even though it’s depreciating in value with every mile you drive. Leasing prevents you from having to deal with the annoyance of being locked down to one specific car and offers more flexibility to families.