Buying and leasing cars are the most popular manners in which vehicles are obtained for personal use. Buying involves transfer of ownership upon payment, whereas leasing allows users to, in essence, rent a new car for an agreed period of time.
Lease terms may last anywhere from a few months to five years, allowing the lessee (the person who signed the lease agreement) to drive the car for that long. Outright purchases of cars transfer ownership for an indefinite length of time, allowing the buyer to use that car forever.
Despite buyers having complete and total access to and use of their vehicles, leasing comes with a number of benefits buying does not. Touched on below are several of the many benefits lessees are subject to upon signing up for leases.
Leases Feature Significantly Lower Costs
Well, of course leases are cheaper than buying cars, because leases only last so long, whereas purchases last forever; which is true. However, many car owners do not use their vehicles enough to extract the full value of their purchase prices from them. Most who buy cars use their newly bought vehicles frequently directly following purchases, sometimes for two or three years, before beginning to use their vehicles less. As such, the hefty, exorbitant purchase prices for those cars are essentially flushed down the drain, all because buyers did not drive them as much as they could have.
Lessees, on the other hand, agree to using a vehicle for a set amount of time. From the day they sign the lease agreement, they understand they will have access to the leased car for a finite amount of time. Lessees are likely to use their vehicles as much as possible throughout their corresponding lease terms.
Buyers Must Repair Vehicles Themselves
It’s reasonable to assume most people would rather own something than simply have access to it. This assumption applies to cars, as well. Unfortunately for car buyers, the onus for responsibility of repairs and maintenance fall on the owners themselves. Lessees simply return their leased car to the dealership where dealers either repair and maintenance the vehicles themselves or hire certified mechanics to.
Many prospective car buyers look over the fact leased vehicles do not have to be repaired by lessees themselves. As one can imagine, not having to repair or maintenance a vehicle is a significant benefit of leasing.
Car Buyers Must Deal with Haggling, Rude Customers
Most car buyers do not want to use their vehicles forever and usually want to sell them somewhere down the line. Car owners often attempt to resell their now-used cars to recoup a portion of what was spent on their cars.
Dealing with prospective buyers is difficult, with many excessively haggling the price down to unreasonable amounts. Also, the time spent on trying to get rid of cars previously bought is significant.
Lessees Can Afford More New Vehicles than Buyers
While car owners are not required to sell or dispose of their vehicles, many owners get bored with their vehicles and want a change. As purchase price of cars far exceed lease price of leased vehicles, car buyers may not be able to afford additional new cars as easily as lessees can. Additionally, lease terms are short, whereas car buyers have rights to their cars indefinitely. For these two reasons, people who lease cars are more likely to be able to afford more new vehicles than car buyers can.