Purchasing a new vehicle is expensive. When you need to make a down payment, get approved for special financing, and make high payments every month, you really need to plan properly if you want to purchase the car of your dreams. Unfortunately, not everyone can afford to buy the car that they want or need.
Car leasing presents a much more cost effective option to getting the car you want. However, leasing a vehicle is very similar to leasing a house. While you can use the vehicle during your lease period, you don’t actually hold any ownership of the car. For some, making payments each month not to own anything can be a deal breaker.
If you’re considering getting a new vehicle, you’ll want to know the many benefits that leasing over buying can bring you. Let’s take a look at some of the biggest car lease benefits that you won’t be able to get through buying.
- Lower Monthly Payments: Unless you purchase a vehicle in full, you’ll be required to make monthly payments until the total cost of the vehicle is paid off. Based on the terms of your agreement, you may be required to make high monthly payments for years and years.
With a car lease, you’re not paying off a borrowed amount. Instead, you and the vehicle’s owner can come to an agreement about how much you will pay each month and how many months you will pay. This means there will be no surprises and you can keep payments low.
- Less Commitment: When you get to the end of a lease agreement, the vehicle is returned to the owner and you’re free to do whatever you please in terms of getting a new car. You don’t need to worry about selling the vehicle or trading it in for a new model. This is especially beneficial for people who only need a car for a short period of time.
Having a smaller commitment means you’re free to change your mind as you please. If you’re the kind of person who likes to drive a new car often, leasing can allow you to do that without the hassle of needing to sell.
- Smaller Costs for Newer Vehicles: We all like to drive a new car, but when your trying to buy, this can be nearly impossible. Leasing allows you to drive the new vehicle you want without emptying the bank. When leasing, you don’t need to worry about a down payment or getting approved for financing.
Leased vehicles are also usually still under warranty. This means that you will have fewer repairs and maintenance trips when you’re leasing a vehicle. This can save you hundreds or even thousands of extra dollars compared to owning a vehicle.
Is Buying or Leasing Right for Me?
There are many different benefits to both buying and leasing a new vehicle. To make the best choice for you, you need to understand both sides. If you’re looking for a vehicle you can own, sell, or trade-in as you please, you probably want to consider buying.
On the other hand, if you want a newer and nicer vehicle without high costs, leasing can present you with a great short-term commitment option. With smaller upfront costs and fewer monthly cost or repair fees, choosing to lease a vehicle instead of buying can really save you a sizable chunk of change.