If you are ready to go out and look for a new car, there are some considerations that you will want to take into account. Naturally, there is the proces of determining the make and model that you really want and that falls within your budget. Beyond that, however, there is the matter of how to go about paying for it. You might think that you either buy it with cash or financing, or you don’t get it at all. This is where a car lease comes into the equation. With a lease, a whole other world of car buying is opened up to you. There are advantages and some downsides to both buying and leasing a car, however, so let us go over those in summary below so that you can make a decision that works in your best interest.
The Concept of Depreciation
This first factor consider is depreciation. If you buy a new car, the price that you pay for the vehicle will not be the value that it is worth in the mere hours following you driving it off the lot. Depreciation really takes a bit out of the overall value of a car, and it happens immediately. In some cases, this can amount to thousands of dollars before you even time to rack up any miles on the odometer. This means that you can even go to sell the car for quite some time, because the value will not even equal what you still have to pay the bank in payments. With a car lease, however, you will never have to worry about the concept of depreciation. You just drive the car for the term of the contract, and then you hand it back to the dealership when you are done.
You Will Need to Watch Your Miles
When considering whether to buy or lease a new car, you should consider your driving habits. If you plan to drive this car only to and from work, then the fact that your miles are limited with a lease will not matter. If you want to use the car to go long distances several times a year, however, that is where purchasing a car outright has its advantages. This is why many people that have two cars will have one that they bought, and another that they lease. This gives you the best of both worlds.
Repairs and Car Ownership
Unfortunately, news cars do not stay in perfect shape forever. While a manufacturer’s warranty will cover you from many repairs in the short term, the time will inevitably come when you are the hook for some pretty major repairs in order to keep you car in great running condition. You do not have any such concerns with a lease. The term of an average lease is three years, meaning that the car is likely to remain repair free for the duration of the contract. Even if a repair does become necessary, it is most likely under warranty so you will not have to worry about paying for it.
The Process of Selling Your Car
If you buy a car, the day will come when you will want to sell it and get ready to purchase another one. You need to be prepared for the reality that you will not get what the car is actually worth in most cases. People simply do not want to pay top dollar for a used car. If you lease a vechicle, however, you will never need to worry about selling it. You will simply turn it back in at the end of your lease contract and get another new one should you choose to do so.
If you are looking for a car and you know exactly how much you can spend each month, you will likely find that you can get more car for your money with a lease. The payments are lower, often considerably so, in comparison to financing a new car. You will enjoy these lower payments as you drive your brand new car away from the lot for the first time. This is yet another advantage that comes with leasing.