While it’s not enjoyable to face the many salespeople who want your business at a car dealership, it is fun to choose a new car to drive. It’s even more fun when you get to choose a new car today and again in two years. It’s just one of the many perks associated with leasing a new vehicle. It might seem like a taboo subject thanks to the way leasing worked in the past, but it’s changed. What you heard about leasing growing up is no longer entirely true, and that means you’re about to learn how many pros and how few cons are associated with leasing a car vs. buying a new car.
The Cons of Leasing vs. Buying
There is on major con consumers should know, and it’s related to mileage. Leasing is not for drivers who put many miles on their vehicles each year. Unless you keep your mileage low every year, leasing simply doesn’t make sense for you. Most leases require you keep your annual mileage at or below 15,000 miles. If you drive 3 miles roundtrip to and from work and put less than 200 miles per week on your car as a result, you might consider leasing a great option. If you drive 100 miles one way to work, it’s not an option for you at all.
The Pros of Leasing vs. Buying
Now that you’ve established you’re a driver who keeps low mileage on vehicles, there are many other perks to consider before you choose to buy a new car. With a lease, you get to drive a brand-new car every few years. The average lease is two years, which means you get to drive a brand-new car for two years, trade it in for another brand-new car in two years, and do this forever. It means you never drive a car that’s more than two-years-old.
This leads us into the next perk. When you drive a brand-new car every two years, you spend very little time in the shop. Your car doesn’t have time to wear down, break down, or experience issues. On the small chance it does experience this, it’s still under warranty and you’re not responsible for repairs.
This brings us to the cost of ownership for a lease versus a purchase. Leased vehicles are not paid for in full. You pay a small percentage of the value of the car, and you get to pay much lower monthly payments. You’re not paying for repairs, and you’re not paying what you would pay if you wanted to buy the car outright. When you lease, you get to buy much nicer, must more expensive vehicles than you can afford to purchase if you’re buying.
The pros and cons of leasing and buying are long, but the financial aspect of this decision is obvious. If you buy a car, you have to take the depreciation on yourself, you might be upside down when you want a new car, and you might pay far more for a new car than you should if you roll into it the excess cost of your old vehicle. With leasing, this is no longer a problem you live with. It’s easy to exchange an old lease for a new one, and that makes driving more fun. There’s a certain peace of mind you receive when you never drive and old car.