The difference between buying a leasing a new vehicle is significant, but most people don’t seem to realize the differences are so obvious. There’s nothing wrong with buying a car when it’s time for a new one, but it’s not always the right selection. It’s easy to assume leasing is for those who own companies and need employee vehicles, for those who want to drive a luxury car, and for those with a much larger budget than the one you have. The assumption is incorrect.
Leasing vs. buying is a major question many consumers ask at the dealership, and knowing the difference makes it easy to decide. Buying is the obvious answer for anyone who does significant driving. The average lease allows for 12,000 miles per year, which is negotiable. For a small fee, consumers can increase the allotted mileage to around 15,000 miles per year. If your job or driving habits make it impossible to keep mileage within this realm, leasing is not for you. If you do keep low mileage, leasing is absolutely for you.
The Benefits of Leasing
– Low to no down payment
– More affordable monthly payments
– Better and bigger selection of vehicles
– You get to drive a new car every few years
– There is no trade-in hassle
– Your warranty never expires
The benefits of leasing are impressive. The most impressive benefit is the cost. Leases don’t cost as much as a new car even though you get to choose a car that’s a lot more expensive and a lot more luxurious if that’s what you want. You pay only the cost of depreciation on the vehicle. This means your monthly payment is low, your down payment is low, and you never worry about other fees such as dealer fees or substantial sales tax fees.
Leasing allows you to drive home a new car every few years. Most leases are two to three years. When it’s up, you get to turn it in and drive home with a new vehicle. When you buy a car, you get to trade it in any time you want, but it’s not always so easy. With a lease, you don’t come into the dealership requiring a trade, you don’t worry if you’re upside down, and you don’t worry about negotiating a deal. When you buy your car, you worry if you owe more than it’s worth, if you need to add fees to your new car as a result, and if you’re able to afford this new payment.
With a lease, you turn it in, pick your new car, and you drive home. You repeat this process anytime your lease is up, and you always know you’re going home with a new car. It’s much easier, and it’s much less stressful when you turn in the lease.
Warranties are Always Good
The other best feature with a lease is the warranty. You won’t have this car long enough for the warranty to expire. You’ll never worry you have to pay for expensive repairs, expensive fixes, and other issues that require your attention. Your maintenance is always covered by the dealer, and your car is never old enough to experience any real issues.
It’s just less expensive to lease a car than it is to buy one. It’s more cost-effective because it’s easier to buy a car for a fraction of the price. You will never own it, but most people never keep cars long enough for this to matter. Now is the time to consider how often you buy new cars, how often you drive, and what you need from a vehicle. The obvious answer will stand out when you make a list of what is most important to you, and that’s how you know what to buy and how to finance it.
Leasing a car is a great option for anyone who maintains low mileage on their vehicles. If you want to drive a nicer car for a lower price for a shorter time, it’s the answer for you.