Leasing a car has numerous advantages over buying a car. Although the popularity of car leases has risen in past years, outright and financed purchases of vehicles remains dominant over leases. Many people want to legally own a car, even though many responsibilities remain with the vehicle’s owner. Below are a few reasons why leases are more beneficial than purchases.
Leasing Is Far Less Expensive
Multiple aspects of car buying are more costly than car leasing. If a vehicle is outright purchased, the price paid is obviously many times higher than total lease value. If a car’s purchase is financed, total monthly installments are even more costly than at-once purchases. Both total value and monthly payments of purchases are generally higher than those of leases.
Financing requires large, non-refundable down payments to secure collateral on the loaned vehicle. Leases, conversely, require small, refundable security deposits, also used as collateral.
As described above, car leasing is indeed significantly cheaper than car buying.
Roll Around in Brand Spanking New Cars Every Year
Few people have enough money to purchase new vehicles every year or to, barring the filthy rich, of course. Those interested in buying cars who are not rich are likely stuck with those cars for the foreseeable future. Even if modifications are done to older, once-purchased-new vehicles, their appearance is likely perceived lesser than newer cars.
Lease terms usually end within two years. Because lease contracts are expensive to break, lessees only wait a few months to lease a new, improved vehicle. Although consistently taking out leases on new, top-notch vehicles is not cheap, it is the only economically viable way for most people to scoot around in sharp rides.
Spend Less Time and Money on Repairs with Car Leases
Leased cars are nearly always under warranty from manufacturer or dealership. It is the lessor’s responsibility to maintain optimal conditions for their leased vehicles, shifting responsibility away from lessees.
Many people who do not take out leases are against them because they do not provide ownership of cars. Owning the title to a vehicle sounds good because there is no debt tied to it and can be viewed as an owner’s personal asset. Simply renting a car from a dealership, in essence what leases are, seems of lesser value than purchasing one. However, ownership does include the ever-entertaining, purely fun responsibility of repairing and maintenancing the car.
Lessees are able to report to their lessor, dealership, or manufacturer-approved mechanic shop to seek repairs and upkeep on the lessor’s dime. Not being responsible for such inevitable repairs is another benefit of leasing.
Reselling Used Cars Is Absolutely no Fun
Although there is a potential to profit from peddling used goods, used car markets are incredibly grim. Most participants in used car markets around the nation refuse to pay reasonable prices for lightly used, newer vehicles.
Car buying is accompanied with most owners wishing to sell their vehicle within a few years of purchase. Dealerships often provide lowball offers for such vehicles, encouraging owners to visit online used vehicle markets. Reselling a used vehicle for a reasonable sum requires lots of time, experience, and people skills. Few people are good at commanding high sums for used cars.
Regular upkeep must be performed in order to maintain a high selling price for used vehicles. Fortunately, lessees need not worry about reselling used vehicles as they are returned to dealerships when finished.
Hopefully you have learned about the unique benefits that leases offer, as compared to buying. You now see the downsides associated with owning a car and what opportunities leases have to offer. Keep points raised herein in mind when considering future car buying and car leasing.