If you’re looking to get a new car, you’re probably stressing about how you’re going to afford it – especially if you’re hoping to drive away with a vehicle complete with all the new technology and developments. There is no doubt about it – getting a new car can be extremely expensive.
Paying cash or taking out a car loan isn’t an option for everyone. Financing a vehicle can be stressful, as can emptying out your savings to pay for a vehicle in cash. Luckily, these aren’t your only options.
Leasing a vehicle is a different way to get the car of your dreams without going out of budget. Many people choose to lease a vehicle because it means they can pick the exact car they want and they don’t need to worry about getting approved for financing or taking out a loan.
But there are many other benefits to leasing a car. Let’s take a look at what some of those benefits are.
Many people choose to lease a vehicle instead of purchase it outright because it is more cost effective. When signing up for a car lease, you are not required to make the same kind of down payment you would need if you were purchasing a car. Instead, you simply need to pay a deposit on the vehicle and cover whatever fees and taxes are associated with the deal.
You will also experience lower monthly costs for a lease. When you select a car you’d like to lease, you and the owner will come to an agreement of how much money you will pay each month to essentially borrow the car. You don’t need to pay off a premium or loan amount as you would if you were buying the car.
A car lease will also have lower repair and maintenance costs. Because most car leases are still under warranty, repairs and maintenance are covered. If something breaks or stops working, you simply need to take it in to have it fixed. If you are the owner of a vehicle, you can rack up expensive costs associated with repairs.
When you lease a vehicle, you’re not paying to own. Each month, the amount you pay is like a borrowing fee for the car, similar to paying rent on a home or an apartment. At the end of your agreement, the car does not belong to you. While this is a turn off for some, it is a benefit to others.
A smaller commitment is a great option for someone looking to only own a car temporarily. If you’ve made a short-term move or you are looking to save some cash, leasing a car can give you an option to drive a nice vehicle without needing to worry about the stress that can come with trying to sell a used car.
A smaller commitment is also great for individuals who like to change cars often. If you’re the kind of person who always needs to have the best of the best, you probably want to change cars every year or two anyway. If you’re trying to buy cars, this can become incredibly difficult and expensive. Leasing allows you to change cars frequently and avoid the stress that comes with buying and selling a car.
While leasing a vehicle has many benefits, it isn’t right for everyone. Before you make a choice, consider your unique situation and your needs.
Leasing a vehicle is recommended for those looking to have the latest vehicle but do not have the cash to buy it directly. Those happy with a car lease are also okay with the fact that they won’t own the vehicle when the lease is over. While some may choose to purchase the car at the end of their agreement, they like knowing they aren’t required to.
If this sounds like you, leasing a car may be a great option for you. However, if you’d like to pay towards owning a car or you’re committed to driving the same vehicle for an extended time, consider buying.