As someone who’s looking to get the best deal on your next vehicle, you may be wondering whether you should go with leasing a car or buying a car. Leases can be highly advantageous because it lets you keep a more up-to-date vehicle without having to fork over a large chunk of change. Meanwhile, buying makes more sense when you have the money to pay up front because leases will always cost more over the long term. Nevertheless, they’re still a great option for someone who drives a lot like a door-to-door salesman and people who drive for a living because it comes out in smaller and more manageable payments. This also gives you constant access to a newer car, and your vehicle will break down less often.
How to Get the Most from a Lease?
To get the best deal on a lease, you have to make sure you’re not paying twice as much as what you would when buying a car. This ensures you keep the ultimate advantage when leasing. For example, don’t focus on the monthly payments, focus on what it will cost in total at the end of the lease. How much more will you have to pay for a lease? The sales representative will often do their best to direct your focus solely to the monthly payments, but this is a trap. Look at the total cost of ownership and how much it will add up to.
Length of Time You Will Lease
The length of your leasing term will often dictate how much you end up paying. You will usually pay a higher monthly premium when you only have a two or year lease. Meanwhile, the five to six year leases will have a lower monthly premium, but you will be locked in over the long term for a big ride. If you happen to buy a lemon, you will be stuck with it for however many years you agreed to and end up not saving any money. With a long-term lease, you will usually have more negotiation power than a shorter lease because most leasing companies like the predictable payments of a long-term lease.
Buying vs Leasing
When you buy a new car, you have fewer obligations that you might have with leasing. Leasing a car locks you into a contract. For the person prepared to financially commit for a specified length of time, it won’t be a problem, but you have to be prepared for the long haul with a lease. You have few ways of getting out of a leasing contract, so you should understand what you’re getting yourself into in advance.
Leasing: Less Time Spent Waiting
Have you ever tried to get a loan from a bank to buy a home? If so, you will understand the pain and frustration of waiting in suspense for weeks on end, only to find out your request for a loan was rejected. Not to mention, the mountains of paperwork you had to fill out only to find out the bank rejected your loan. With a lease, it works much faster, and you often find out within 24 hours if you have been approved. The car reaches you much faster, which is especially important if your old car fell apart, and you have nothing to drive to work.
No Down Payments
Many times, leasing will not have a down payment, or they will only charge a small down payment. In addition to no down payments, leasing lets you get a higher quality car with better equipment. This is something you might not otherwise be able to afford.
For many cases, leasing makes sense. The most common lease will be three years, and after that point, you can keep your car up to date with the latest on the market. Keep in mind that when you lease, you still have to maintain the car through oil changes and regular maintenance. Still a lease hands you a predictable cost of ownership.