Shopping for a vehicle is a generally uncommon, “big” part of people’s lives. Taking into consideration various make, models, brand names, years built, etc. is difficult enough a task as it is. Deciding whether to lease or buy a car is a vital yet often misunderstood aspect of purchasing a car.
Detailed below are several benefits that come with leasing a car, rather than buying one, that you should read over before finalizing your car purchase.
Obtaining a New Car Every Few Years
There are some people wealthy enough to purchase a new vehicle yearly or biannually. However, most drivers who are seen in that many new vehicles probably lease them. A strong benefit of leasing vehicles is the ability to always drive a new model.
Lease terms typically end in no longer than three years, sometimes less than one year. Lessees commonly lease new vehicle after new vehicle, paying significant lower prices than what purchasing would cost.
Lessees Never have to Endure the Struggles Associated with Reselling Cars
Those who outright purchase a car will likely drive that same car for a number of years. That same car, over time, will transition from a new, head-turning beauty into a decade-old chuckwagon. Upon that vehicle reaching older age, owners usually try to resell them. Unfortunately for those who own vehicles, used car markets are full of competition. Most consumers interested in used cars seek out the cheapest running vehicles possible. A variety of used vehicles are purchased well under fair market value. Additionally, many car owners incur stress and other difficulties in attempts to resell.
Lessees never have to worry about reselling vehicles upon lease term end as they are returned to dealers. Lessees also do not have to worry about performing routine maintenance to uphold resale value in old cars.
Leave Time, Money, and Stress Tied to Regular Maintenance Behind
Cars under lease are subject to active manufacturer warranties that safeguard against lessees carrying out repairs. In the event a repair is required, lessees simply return the car to its dealership or another dealer-approved mechanic shop. After returning the vehicle for maintenance or repair, dealers will give you a ride home and deliver the vehicle whenever it is finished.
Owners of cars do not have the liberty of passing the onus for repair onto someone else. Car owners must perform maintenance themselves, or face a vehicle with lowered value. If owners decided to hire a mechanic, owners themselves would be required to pay for labor and parts. Lessees need not pay for such repairs or maintenance, a wonderful aspect of driving a car under lease.
Spend Less Money on Leased Cars
Leases are usually paid on a monthly basis. The cost of a lease is determined by subtracting value of the vehicle during years leased from the initial purchase price. For example, a $50,000 vehicle is used for three years, after which the value drops to $34,000. The lessee is required to pay about $16,000 over its three years of use.
One who purchases a vehicle would pay the $50,000 purchase price and be stuck with the vehicle. Lessees, fortunately are not subject to such high financial burden associated with car ownership.
Car leases usually require small, 100% refundable security deposits to secure initial transfer of usership. Car buyers must submit a usually-hefty down payment that is not refundable. Lessees clearly have the better deal between leased and bought cars.
As discussed, there are several significant benefits that come with car leases. Although lessees are not granted ownership of their leased vehicle, generally viewed as the largest downfall of leases, they are blessed with no responsibilities of maintenance, upkeep, or resale. It is surprising why car leases are not more popular than financed or purchased cars. Consumers taking advantage of car leases are truly making a wise decision.