Leasing a car is one of the wisest decisions you can make. There are many reasons why this is so in the case of leasing versus buying. While some people will always prefer the longer-term commitment of buying a car, leasing has become an extremely popular option among those who need reliable, consistent transportation over the years. Buying isn’t the only way you can get a great car parked in your driveway.
Perks of Leasing
Leasing is a better option than buying in a number of different circumstances. If any of these situations fits yours, then leasing might be just the thing you’re looking for.
1. You need lower monthly payments: You still want to drive an expensive car but you just can’t afford the monthly payments that co-exist with buying. Leasing is your best bet. When you lease, you inevitably get a lower monthly payment in almost every possible scenario than you get when you buy.
2. You don’t want to commit to long-term payments: When you lease, you make payments on a car for a shorter duration of time. Once your lease agreement is fulfilled, you walk away worry free. There’s no need to sell the title, the car, or continue anything having to do with the car. At most, you have a disposition fee, which is between $300 and $500. This goes to help with cleanup of the car and re-leasing.
3. You want to save money on repair costs: The majority, but not all, of leased cars are under manufacturer warranty. This is great news for those who dread those costly repair bills. Nothing is quite as nice as having a car maintenance or repaired for free. This alone is a huge boon for the decision to lease.
4. Tax breaks: In certain instances, you can claim tax perks on things like depreciation of a leased vehicle.
Benefits of Buying
While leasing is the best option in the majority of cases, there are some instances where buying makes good sense. Situations such as high mileage is the first.
1. If you need to drive a car a lot annually: Leased cars typically have set miles that you can drive them, capped at around 15,000. If you need to drive a car more than this, leasing may not be right for you. When you buy a car, you can drive it as much as you want.
2. If you’re dead set on ownership: Ownership itself has its perks. If you want to own the car and have the option to sell it at the end of your financing period, then it makes good sense to buy a car. You won’t own a leased car at the end of the lease. The money is only good to keep you in that car during the lease itself.
3. If you want to own a car for a long period of time: Some people like stability. They want to know that a car is going to be in their household for a long period of time. If you want to hold onto the car for longer than a few years, buy.
What’s the best option?
In the majority of circumstances, leasing is a smart option. Because of the lower monthly payments, you can possibly afford to drive a luxury car instead of a used car or new car that isn’t up to your standards. It expands your options and allows you to enjoy a higher quality car. In rare circumstances, people are set on ownership, so in this case leasing wouldn’t be the best option. In high mileage households, leasing is out, too. In all other circumstances, leasing is the single best way to drive a super nice car while still remaining within the limited budget you might. You can look forward to near free repairs, low monthly payments, and a short-term commitment through leasing.