Cars are among the most expensive purchases consumers make. They’re less than homes, but homes are a much wiser financial investment. You pay hundreds of thousands of dollars for a home that most likely increases in value over the years. You almost always make your money back on a house, but you never make your money back on a car. You can pay full price for a brand-new car with every upgrade, every finish, every great option and never sell it for close to what you paid for it unless it becomes a classic decades down the road.
Cars are not sound investments, yet almost everyone needs one to get to and from work, school, home, and everywhere else. Cars aren’t wise financial decisions, but they’re necessities. This is why leasing is quickly becoming a more feasible option for buyers. It’s smarter, it’s more affordable, and it’s allowing consumers to save a lot of money. Cars depreciate so much when they’re driven off the lot, and it’s near impossible to recoup that kind of loss. It might take four or five years to finally get ahead with your payments and owe less than your car is worth, but it’s almost always just barely. Leasing is a better option, and there are countless reasons why.
Leasing Offers Less Expensive Monthly Payments
The payments you make when you buy a car are calculated based on the total price of the vehicle. Since you’re buying an entire car, the payments are quite high. When you lease a car, you pay only the amount the car depreciates when you drive it. It’s a significantly smaller cost than buying, which is why payments are so much lower. It’s also how many people are able to afford to drive luxury vehicles that are otherwise outside their budget by tens of thousands of dollars.
Leasing Offers More Protection
When you buy a car and want to trade it in before you pay it off, you run a large risk of owing substantially more than you can get as a trade-in or sale. This means you must find a way to make up for the excess you owe to pay off your loan. Many consumers roll that excess amount over into a new car, which makes the loan larger and the car they buy must be little less expensive as a result. This is not an affordable way to shop for a new car, and it’s not financially savvy.
Leasing protects you from this problem. You get to trade it back in every two or three years owing nothing at the end of your lease. This allows you to lease a brand-new car every few years with no additional fees, with no problems at the dealership, and without digging yourself into a deeper financial hole. You also have a warranty all the time since you’re not driving your lease long enough or far enough to cause it to expire. You also have no worries about your car breaking down, as cars this new typically do not experience major issues. If by some small chance your car does break down, you will find your repairs are covered by your warranties.
Leasing a car means many positive changes for you. You no longer covet cars you cannot afford. You are no longer stuck driving something you simply don’t like, because there is always a date on which you get to find a new car. You’re not overpaying for a car, and you’re not causing a bigger financial burden in your life. Because many buyers forgo car ownership in favor of trading their vehicles in regularly, it makes more sense to lease and not worry about being upside down or stuck. Leasing is perfect for those comfortable with making a car payment for the rest of their lives. It’s also more fun, and who doesn’t like driving what they love?