Making good financial decisions is a goal for everyone, but it’s not always as easy as it seems when you’re in the middle of making one in your own life. When it’s time to buy a new car, you probably wonder whether it’s a better idea to lease or buy. There are those who say leasing is not a good idea because you never own your car, you always have a payment, and it’s a waste of money for what is nothing more than a long-term rental. There are also those who say leasing is the best thing they ever did, and it worked out for them in a much more affordable manner thanks to the many perks leasing has to offer.
– Do you like to drive new cars?
– Do you ever pay off cars you purchase and drive them for many years after?
– Do you trade in your car every few years for a new one before it’s paid off in full?
These questions are easy to answer, and they provide you with a good idea of what’s right for you. Most people like to drive new cars, but few people really keep their car long enough to pay it off and continue to drive it. If you trade in your current vehicle every few years for a new one, you’re wasting money each time. The simple fact is most cars are not worth what you owe when you turn them in. This means dealers do some math to figure out how they can make it seem they’re offering you what you owe or close to it, and then they hide the excess in the price of a new car. You’re driving off the lot in a new car with a new payment that might have just a bit of your old car put into it.
That’s not at all cost-effective. Unless you drive more than 15,000 miles per year, you’re going to want to see what leasing has to offer. Long-distance drivers can’t stay within the mileage allotted during a lease, so it’s not an option for them.
Monthly Payments are Lower
You can buy a Honda for $400 per month and spend the next five or six years paying for it, or you can lease a BMW for two or three years for $299 per month. The choice is yours, and it’s a much easier choice than you imagine. You’re not paying the full price of the car to lease, so you get a big break on monthly payments. You’re just paying the car’s depreciation while it’s in your hands.
You Get Better Options
Luxury cars aren’t necessarily better cars if you prefer to drive standard vehicles, but you do have a better selection of cars and options when you lease. Low monthly payments on more expensive vehicles makes it much easier for you to drive a car that you really love rather than one you like and can afford. More vehicles are affordable when you lease.
No Major Repairs
Cars are typically leased for three years or less, which means you always have the warranties. This means no major repairs the vehicle needs fall under your responsibility to pay. You can use the warranty to pay for them, but you probably won’t find any major work needs to be done. Your car will never be old enough to go through the major issues many older cars face more often.
You Drive A New Car
The biggest benefit of leasing is always driving a new car. You’re going to get one at the end of each lease, and it’s a stress-free shopping trip. Leases are done when they’re done. You have no financial obligation unless you exceed your contracted mileage or cause damage to the vehicle. You turn in your lease when it’s up, choose a new car, and you never worry there are fees or overages or other charges remaining on your old car that must go into the financing aspect of your new car.
This also means you’re eliminating the need to negotiate a trade, which is always a nice option. It’s stressful to make deals for trades and new cars, and it takes a toll. With a lease, this is no longer an issue.
If you love change, you love a new car, and you want the security of never driving an old vehicle, you should go for a lease. It’s the perfect answer for those who want to drive something they really love for a much lower price, and it’s a car without a commitment that lasts too long for your comfort. It might not work for everyone who drives, but leasing is a viable option for many drivers who’ve never considered it in the past.