A car is a necessity in a world so big. To go to work, grocery shopping, on vacations, and much more, there needs to be a private form of transportation that makes life completely yours. To be put in a car, you’ve got a few options. One option is to buy the car. When buying you will finance the entire price of the car up front, making for more costly monthly payments. The other option – leasing – gives you a much cheaper short-term way to secure a great car to drive for all of your daily activities.
When you lease a car, you pay for a period of time where you will have the right to drive the car, but you will not be funding the entire sale price of the car. That means you never drive away in the car as the owner of it. Once the period is up, you return the car to the leasing agency and find another way to get a car to drive for your needs. Here are a few other things to remember about leasing.
Low monthly payments
Leasing is wonderful because you don’t finance the entire price of the car, just the car during the period you will be driving it. This means that you’re going to have lower monthly payments than if you’d bought. This situation is ideal for people who can’t afford to finance the entire car.
Drive a nicer car
Since you’re not funding the entire price of the vehicle, you’re going to drive a much better car than if you’d bought a new or used car. This isn’t without its downside, though, since you don’t have the right to modify the car in any way. If you want to do what you want to do with the car, buying would be better.
Get cheaper repairs
If you hate paying repair bills and don’t want to get stuck with the responsibility of repairing a car that is older and outside of warranty, leasing is a terrific option. When the car breaks down or needs general maintenance, you take it to the leasing agency and your car is covered under the original manufacturer’s warranty.
Drive a newer car
Some people believe heavily in reputation. They don’t want to own a used, beat up car, even if they do have the right of ownership. What they want is to drive something that looks new and drives new. Leasing is the perfect way to do this.
Short commitment to payments
When you buy, you’re going to be making payments for a very long time. With leasing, the period of time where you’re making payments is much shorter. This gives you the flexibility to buy a car at a later date but pay lower monthly payments at the time.
Set mileage can be beneficial to you and it’s a part of leasing. If you lease a car, you’re not going to be able to drive it an unlimited amount of miles. You’ll have a set number of miles to drive it annually and this will mean that if you drive it more than that, you’re going to be assessed a fee for every mile over. At first this may seen like a downside to leasing but in fact it keeps you driving a set number of miles and lowers your monthly gas bill. For someone who might want to save on leasing so that they can later buy a car, this is a great way to do it because you’ll save on gas.
In a few instances, buying might be your best bet, but for the average household on a budget, leasing is a welcome short-term savings that will improve the quality of car the family can drive.