Buying a new car versus leasing a new car is a vast difference. The primary difference is the ownership of your car. You get to own your car if you buy it, but you’re just borrowing it when you lease. It might not sound overly enjoyable to essentially borrow a vehicle, but it’s surprisingly beneficial to many people who choose to lease rather than purchase a new car. If you’re unfamiliar with the major differences between buying and leasing, you’re not alone. Buying is what many people consider the normal way to car shop, but leasing is growing in popularity each day.
The biggest downfall of a lease is the mileage aspect. It’s the only thing that makes it a problem for some buyers who drive long distances. If you put more than around 12,000 miles per year on your car, you won’t find leasing a good option for you. Each mile you drive in excess of your contracted mileage costs a fee, and it’s not cheap. If you keep low miles, leasing is a great option for you to help you find the car of your dreams. There are numerous benefits to leasing, and this list is just a small sample of what you get when you lease a car.
Brand New Cars Every Few Years
The best thing about a lease is that you get to determine how long you drive your new car. Most people lease vehicles for two to three years, and that means you get a new car that often. It’s an easy situation to live with, too. Rather than deciding you’re tired of your current car and in the market for a new one only to find out your car isn’t worth near what you owe, you get to turn in your lease free and clear and get a new car without any financial issues. Leases are only yours for the contracted timeframe. With a purchase, you get to keep your car forever, but you also have to pay the excess fees when you trade it in, find a dealer that is willing to take it in on trade, and find one that is willing to give you what you feel your vehicle is worth.
Better Cars At Your Disposal
When you buy a car, you pay full price for it. When you lease a car, your monthly payment covers the cost of the vehicle’s depreciation. This means you’re paying only a fraction of what the car is worth to drive it, which means monthly payments are significantly lower. If you’ve always dreamed of driving a luxury car or a large SUV, you’ll find leasing is a good option since the payment is significantly lower. When you lease a car like this, you might even find your monthly payment is lower than it would be if you purchased a less expensive vehicle.
It’s More Affordable
In addition to a lower monthly payment on a much more expensive vehicle, leasing allows you to save in other areas. You aren’t paying full price for your car, so you pay far less sales tax. You might even find all your regularly scheduled maintenance is free. Many dealerships offer your maintenance free of charge so you are more likely to keep up with it. They want that car back in perfect condition, and this is one way they can ensure it’s likely to happen. You also never run out of your warranties. While it’s unlikely any major issues will occur with a brand-new car in two or three years, you’re covered if it does. Warranties are great to have, and leases never expire.
Your new car can be leased or purchased, but it’s all about what you want. If you drive a lot, you might not want to lease a car and pay excessive overage fees when you exceed your mileage. You do have the power to negotiate your annual mileage before you lease a vehicle, so that’s another consideration shoppers make. If you aren’t sure what is right for you, consider both options and do the math to figure out what gets you what you want in terms of a new car.