When many people find themselves in need of a vehicle, such as if their current vehicle breaks down or if they are just ready for a change, then they often look into buying. However, this is not your only option. In many cases, Memphis car leases are a far better option. Of course, before you go out and lease a car, it’s a good idea to find out more about the process so that you can determine if it’s right for you. Once you do, however, there is a very good chance that you will decide that you never want to buy again when you can just lease instead.
What is a Car Lease?
First of all, you have to understand what a car lease is. When you buy a car, the process probably seems pretty simple; you choose a car that you like, you apply for financing, and you make monthly payments to pay for the ownership of the car. In a few years, the car will be paid off and will be yours, free and clear.
A lease is a little bit different. You may also need financing to pay for a lease — although some people do pay for the entire lease upfront, which is one option that you can consider if you have the lump sum of cash to do so — but the financing isn’t designed to cover the purchase price of the car. Instead, it is used to cover the amount that the car will depreciate in value while you are driving it. This means that the amount is usually a whole lot less than the purchase price of a car.
You should also know that when you make your final lease payment, you will not be able to keep the car free and clear as you would when buying one. Instead, you will need to turn it into the dealership. When this happens, you may be given the option to buy the car, which is what some people do. A lot of people who prefer the benefits of car leases end up just signing up for another lease instead, which is also a viable option, particularly if you are ready to drive something different for a while.
Why is Leasing a Car Better Than Buying One?
Even though the idea of leasing a car might seem appealing, you could be wondering if you would be better off buying one instead. Some people do find that buying is the better choice for them, but these are some of the main reasons why leasing can be better overall:
It’s better for tight budgets. If you are having trouble fitting a car payment into your budget, you might find that a lease payment is much easier to afford.
It allows you to drive a nicer car. You won’t have to worry about driving an old, worn-out car, since you can turn in your lease every few years. You can also generally lease a nice car for less than what it costs to buy a less expensive vehicle.
It’s not as restrictive. You do not have to worry about making payments for six years or ending up with a car in the long-term that you don’t really like. Lease terms are usually two years or so, so that’s the longest you’ll have to worry about being “stuck” with a car and a monthly payment. Things can change a lot in a few years, so having the option to make a change in a couple of years can be a good thing.
It isn’t as much of a hassle. The truth is that actually owning a car in the long-term can be quite a hassle. You could eventually find yourself dealing with tons of repairs and other problems. This is not the case with a leased vehicle, since the vehicle should be under warranty the entire time that you drive it and since you can turn it in before it gets old enough that repair issues will be a big problem.
What are the Disadvantages of Memphis Car Leases?
Of course, even though car leasing is an excellent option for many Memphis drivers and drivers from all over the country, it does have some disadvantages, just as anything does. These are some of the somewhat negative things that you might want to consider before leasing a car:
You will be making payments on something that you will never own. For some, this is a disadvantage that they cannot get past.
You will not be able to drive the car as much as you want. If you drive over a certain number of miles during your lease term, you could face fees when you turn the car in.
As you can see, even though Memphis car leases are not the right choice for every driver, they are the right choice for many. Before you decide to buy a car, make sure that you look into this option. Then, you might find that it’s actually just right for you.