A lease typically has a lower monthly payment than buying a car. This is because you aren’t paying for the full price of the vehicle. You’re only paying for the estimated depreciation that will occur during the time, typically three years or 36 months, that you have the lease. It is a significantly more affordable option if monthly payment is a primary concern of yours.
Leases are typically advertised and require little to no money down depending on the individual circumstances. It is an attractive option if you don’t have the time to save up a lot of money for a large down payment. If you can afford to put more down you’ll pay less monthly, but the lease gives you more flexibility in your purchasing decision.
Cost of ownership
When leasing a vehicle you know how much it is going to cost to own because the manufacturer’s bumper-to-bumper warranty covers any repairs that occur during ownership. You aren’t stuck with paying for a large monthly payment on top of costs for repairs. The terms of your lease still specify that you must perform regular and routine maintenance, such as oil changes every 3,000 miles and getting your tired rotated. Some leases include these services, which give you a better estimate of how much you’ll be spending to own the car for the next three years.
Newest and high-tech features
A lease requires you to return the car to the dealership after the term is up or pay for the cost of the vehicle, which is determined when the lease is drafted. Your lease allows you to drive something new and flashy every couple years so you don’t get tired of driving the same thing. It also gives you flexibility to try out the car for an extended time period to determine if it is something you might actually want to buy in the future. The change adapts with your tastes and gives you access to the newest features car manufacturer’s are implementing in their vehicles as they upgrade year after year. Newer cars have the most updated and efficient safety features as soon as they become available.
A primary disadvantage of a lease is that you are constantly making a payment because you’re always getting something new. You’d also be making payments in the form of repairs if you were to buy a new or used car. You’re also limited in the customization options you have since it needs to be returned at the end of the lease’s term, but if you really like the car you can buy it when the lease expires and do whatever you want to both the interior and exterior. You’re also limited in how many miles you can drive and have to pay approximately 15 cents for every mile you drive above that. Keep that in mind if you do a lot of driving and won’t be able to adhere to the restrictions. You might want to consider a rental car for that cross country trip you’ve got planned, but don’t let that discourage you from going with a lease for your next vehicle.
Thoroughly consider all your options when going to get your new car, truck or SUV. A lease is much more appealing if you need flexibility in your options and want to save money. You get to show off your new ride every couple years and stay cool and comfortable while doing it in style.