If you’re in the market for a new vehicle, you’re likely wondering whether or not you can actually afford to purchase your new dream car. But before you break the bank to make a down payment that’s already out of your budget, let’s take a minute to consider all your options.
Buying a vehicle isn’t the only way to drive a new car. If you’re looking at a vehicle with a price tag a bit out of your budget, you may want to consider leasing instead.
Car Leasing vs. Car Buying
Buying a vehicle and leasing a vehicle are two extremely different ways to drive a new vehicle. However, leasing can bring many benefits that buying can’t. To help you decide whether or not leasing is a good option for you, let’s take a look at those benefits.
Smaller Upfront Costs
When purchasing a new car, you need to pay a down payment on the car. If you aren’t able to buy the vehicle outright, you may also need to get approved for special financing to cover the rest of the cost. This means you need to be in strong financial standing and have a solid credit score.
But leasing can dramatically cut back the stress you may feel when purchasing a car. Although you can make a down payment to lower your monthly costs, it isn’t required or even necessary. Upfront costs associated with leasing includes a deposit and some fees and taxes.
Lower Additional Costs
As a car owner, you’re responsible for all the repair and maintenance costs associated with the vehicle. If something on the car breaks, you’re responsible for ensuring it is fixed – no matter the cost. This can quickly add up if you run into many problems with the vehicle.
But when you lease a vehicle, those costs are typically taken care of because the car is usually still under warranty. If something on the vehicle breaks or stops working properly, you can get it covered by the warranty – potentially saving you hundreds or even thousands of dollars.
No Long Term Commitment
Some individuals choose to buy over lease because they want to own the vehicle when their end payment is due. They like knowing that each monthly payment they make is going to pay off a total premium, and once that cost is paid, the car is theirs to own.
While this is a benefit to some, it’s also a drawback to others. If you’re looking for a short term way to drive a new vehicle or if you’d like to test drive a car for a while before you decide to purchase, leasing can provide you with just the way to do that. Because you don’t own the vehicle when your lease expires, you only need to give the car back if you don’t like it.
No Reselling Worry
Selling a used vehicle can be a real struggle. Because cars depreciate quickly as they are driven, trying to find a suitable buyer for a car can leave you with a headache. It can be very difficult to get a good price for a car you’ve been driving, even if it is only a few years old.
When you lease your vehicle, you don’t need to worry about selling the car. Because you are not the owner, it is not your worry how quickly the car depreciates. Instead, you simply stick to your monthly payments and return the car when the lease terms are done.
Newer Car, Less Money
When you purchase a new vehicle, you need to be realistic about what you can afford. This may leave you a bit disillusioned if you find out the car of your dreams is way out of the budget.
Leasing a vehicle will allow you to get all the best features at a fraction of the price. If you’re looking to have the best of the best but you don’t have the wallet to give it to you, leasing a vehicle can present a great alternative.