Those who have heard of car leasing probably know they have to return the car or that there is a monthly mile allowance, which does feel limiting. Owning a car may seem like a better choice because it is yours. You can do what you please, but there is more to the story. There are a number of benefits to leasing a vehicle to consider, so keep an open mind because car buying may not be the best choice.
There are two ways to purchase a vehicle: You can pay cash for a car or finance it. One thing to consider is that financing a car does not mean you truly own it. The truth is that the lender owns the car and is allowing you to used it until you pay it off, which is when you get your car. Yes, you can do anything you want to the car, but the lender holds the title, meaning it can be taken away when you go through financial issues.
Affordable Monthly Payments
Another thing to think about is your monthly payments. A car payment for a new car could be astronomical, and this payment will be due every month. You already have a lot on your plate, and now you are going to be adding a pretty big payment that you are going to have to keep up with if you want to keep your car. Those who decide to lease will be happy to learn that you are going to be paying up to 60 percent less for the same car. This is because the value of your payments is calculated based on the depreciation value during the lease term.
Down Payment is not Necessary
The idea of a down payment not being required may sound like music to your ears, and it should. The down payment is a big chunk of money. Some people take out loans to pay a down payment, which adds to your debt. Some liquidate their entire savings to get over that initial hurdle when you purchase a car. This is something you can skip if you lease a car. Now, you can pay a large sum, but it will be on your terms, which reduces your monthly payments. The only thing you are required to pay are taxes, fees, and the first month’s rent, which is less compared to what you would have to come up with if you needed to pay a down payment.
New Cars Galore
Your have probably noticed that those who lease a car are driving a new car every few years. This is because you can easily lease a new model after the lease term is over, which is usually two to four years. This means you are going to be driving a new car for a few years and get to drive another when you are done. You should remember that this also means that you are going to be enjoying all the new technology that comes out. Cars can warn you if you are leaning into another lane, so imagine what cars will be able to do in just a few more years.
Finding a good mechanic can be difficult. This is such a common issue that it is likely that you have seen one or two jokes about it when watching television. You do not have to worry about that if you are leasing a car because the lease term ends before the warranty does. The dealership is going to deal with repairs because they are covered by the warranty. Some companies offer free routine checks, too, during the lease term.
Leasing Might Offer Tax Benefits
Those who are leasing a car may want to know that you are going to get a few tax perks if you lease. For one, depending on the state you live in, you will not have to pay the sales tax on the entire value of the car; it will based on the assessed depreciation value. This means you are going to be saving some cash, and those who have to drive for work may be be able to deduct maintenance expenses and car lease payments.
There are many other benefits to leasing a car that surpass buying a car, but hopefully these benefits make it easy for you to know what to do next. Those who want to save more money should also consider leasing a car that costs less, which helps reduce your monthly payments even more.