Detailed below are variances between car buying and car leasing that mark vehicle leases as the frontrunner in obtaining new road transportation vessels.
Car Buying Is Only Feasible for Those with High Disposable Incomes
Let’s consider Mark, interested in car leasing. Let’s also consider Jim, a devout car buyer who personally dislikes leases. Let us value that Mark and Jim are both interested in the same vehicle, for example’s sake, the 2017 Acura ILX. Both like having new cars after no more than three years.
Mark and Jim may both be able to secure two 2017 Acura ILX models, one for each of them. However, Jim is unlikely to comfortably afford buying a car unless he is filthy rich. Jim’s pocketbook will take a significant hit from buying that Acura ILX, or any car, for that matter. Mark will likely find monthly lease payments affordable, especially in relation to an outright purchase, such as in Jim’s case. Because Jim and Mark only want their Acuras for three years at maximum, leasing is bounds more cost-effective.
Leasing is almost always better than buying, except in situations someone wants life-long ownership, because it is significantly cheaper.
Switch Out Brand New Cars Regularly
Car leases usually end within three years, sometimes as short as six months. Most lessees choose not to purchase their leased car at the end of its term, opening the door for another new car. Car buyers, unless incredibly rich, have no chance of outright purchasing new cars as often as lessees can.
While buyers retain ownership of a vehicle and can therefore sell it, resale markets for used cars are not very prospective. Many sellers receive no offers or lowballs on vehicles of reasonable listed prices. This results in many owners not receiving fair returns on their previously purchased new cars. As described, buyers are largely unable to purchase new or nearly-new cars year after year, unlike lessees.
Never Waste Time on Maintenance Again
Leased cars will always be subject to a warranty that protect your vehicle against most damages. Dealerships commonly cover anything else that the warranty does not. Very few repairs and maintenance procedures end up in the lessee’s hands, an attractive aspect of car leases.
Car buyers, the owners of their vehicles, cannot pass on the onus of repair responsibility onto any other party. Car owners are often bogged down with time consuming maintenance requirements, not to mention as well as having to foot the bill.
Car leases are far more enjoyable, unless you love fixing broken down cars yourself and paying their bills.
Forget About Dim Vehicle Resale Markets
Many car buyers go on to sell their vehicle one day, usually at a price far less than what they could command. Used vehicle resale markets’ populations typically lowball and firmly bargain, even if the car is priced reasonably.
Not only are resale markets generally grim, maintaining good condition of a vehicle takes considerable time and know how. Carrying out regularly scheduled maintenance on a regular basis helps hold resale value high. Unfortunately for car buyers, maintaining a high resale value takes large blocks of free time and does require purchase of tools and supplies.
Many positive aspects of leases exist that do not for buying cars. Save money, time, and stress by taking out a lease on a new or lightly used vehicle.