Many people forget that there is a middle ground between buying a car and renting one. Leasing has long since been the underdog of these two avenues to obtaining a car. Curiously, it’s one of the single best ways to drive a very nice car for a reasonable amount of cash. There are many benefits of leasing that outweigh the few cons when pitted against the option of buying.
What’s to love about leasing
1. When compared to buying a car you’re going to get a much cheaper monthly payment and still be driving the same car.
2. The ability to switch cars often: As they say, variety is the spice of life and leasing gives you the car version of that saying. Every few years you can get a brand new car to lease and benefit from its use without tying yourself into a long-term agreement.
3. Possible tax perks: Some of the fees of your leased car, and its depreciation, will give you access to some great tax breaks. Few people know this before leasing a car, so investigate it. It’s one of the single best reasons to lease.
Benefits of buying a car
Despite the great things about leasing, there are a few advantages to buying as well.
1. Unlimited mileage: When you lease a car, you’ll be given a set number of annual miles to drive it per year. If you go over that mileage, you’re going to pay hefty fees for every mile over. By buying a car, you get unlimited miles with no worries about fees.
2. Stability: Switching cars every few years isn’t something some folks would want to bother with. When you buy, it’s yours for a long time as long as you make your monthly payments.
3. You can sell a new car after its paid off: This perk is obvious. You won’t be able to sell your leased car once the lease is up.
The verdict: Lease or buy?
If you’re on a strict budget and don’t foresee that changing for a few years, leasing is inevitably your best option. You’ll be able to drive a super nice car for low monthly payments and then have the option to buy a car long-term when your financial situation improves. If you love variety in your cars but just can’t afford to buy a new one every few years, no worries. Leasing is the way to remedy that. You’ll drive away in what amounts to a new car every couple of years until you finally commit to buying. Eventually most people will choose to buy a car, but the fact is that until you’re able to afford a car you really love, it just makes more sense to lease.
The best news about leasing: You save on repairs as well. If you’re on a used car budget, chances are you can’t afford to buy a newer car. This means you’ll be paying out of pocket for repairs on a car that isn’t covered by a warranty. With a leased car, the car is usually new enough to be covered by manufacturer’s or dealership warranties. You’re going to save a ton of money on repairs if you lease a car instead of buy one. As always, it comes down to money. If you want a low down payment, or even no down payment, you should go with leasing.