Car Leasing vs. Car Buying-Understanding Your Options
Are you in the market for a new automobile? You have two main choices when it comes to getting the vehicle you need. You can either purchase the vehicle or you can lease it. The two terms may sound confusing to those who are really not educated in the variances. However, there is a vast difference in the payment amount of a car that is leased and one that is being purchased. Before shopping for the next best deal, you must read this article.

Leasing Gives A Cheaper Monthly Payment

Leasing is a great way to get an amazing car for cheap payments. The theory behind this type of transaction is that you don’t own the car at the end of the term. Most leases last for 3-5 years, depending on the cost of the car. Let’s say for instance you are looking at a 2017 Chrysler Pacifica. The MRSP on this vehicle is around $29,000.

To buy this vehicle on a 72-month purchase, the payments would run around $550 a month, that is if you put down $1,000 and have perfect credit. Now, if you were to lease that same van, your payment would only be around $350 a month. Why is this so much better? Well, both cars have a term of five years, but you will pay $200 less a month for the same vehicle. Leasing is like renting the car. You never own it, but you have it until the warranty period runs out, which is another reason why leasing is so amazing.

Warranty Covers Repairs During The Leasing Terms

No one wants to deal with car issues. Sitting in the auto mechanic’s shop is mundane, not to mention all the costs associated with repairs. During a lease of 3-5 years, you are covered under the manufacturer’s warranty. Other than simple maintenance issues, they cover all the car’s needs. Where will you be when the warranty runs out on a car you purchase? You will be stuck in the mechanic’s shop waiting on repairs. After the warranty ends, most cars start needing major service.

Down Payments Are Not Necessary in a Lease

Even if you have stellar credit, most lenders want a down payment. This is in addition to any trade-ins or other rebates that the vehicle comes with. With a lease, you don’t need to make a down payment. You will pay a security deposit along with any taxes or fees, but you don’t need a trade-in or a cash down to get into the vehicle.

Mileage Counts

Do you drive a lot for work or pleasure? If you are one of the many people that travel more than the average person, then a lease may not be the best option for you. However, if you can fit within the allotted 10-14,000 miles per year, then this may be the way to go. When you buy a vehicle, no one is watching your mileage. Though, it is important to note that when you try to trade it in, the mileage means everything. On a lease, you will need to pay for any overage on the miles. You can buy larger mileage packages so that you ensure you have plenty of miles to cover your lease.

You Can Still Buy A Lease

At the end of your lease term, you do have the option to purchase the automobile. Did you know that most people keep their vehicle for 5-6 years and then trade them off anyway? Some don’t even make it that far along in the purchase process. That is why so many people have negative equity added to their new loans. With a lease, you walk away from the car with no strings attached. You are not required to purchase it. However, if you are in love with the car, then you can buy it for a fair market price. A lease rental works on the premise that you will always have a car payment anyway, so why not drive the newest and best cars out there for less?

Making the choice between a lease and a purchase is difficult. However, when you see how much money a lease can truly save you, then there is no way that you will want anything else.