Why should you always lease a car? Leasing allows a person to get a new car every few years if they wish and keep their payments relatively stable if leasing the same make and model of car. Leasing also frees the lessee from having to dispose of the car at the end of the lease term by selling it as a private party or trading it in for another car.
Why should you always lease a car?
Many people are apprehensive about leasing because the benefits of purchasing are unclear. Depending on personal preferences, lifestyle, and financial situation, leasing can be packed with advantages. Leasing is similar in theory to renting an apartment. As the person leasing the car or the lessee, you are paying some initial fees along with monthly payments to use the car, but you don’t own it. Every lease agreement has terms and conditions you must adhere to and at the end of the agreed-upon term, you return the car to the leasing company. This type of arrangement has several benefits that could make leasing a much better deal for you. One of the greatest advantages of leasing a car is typically lower monthly payments than if you were obtaining financing to purchase the car. When you finance a vehicle purchase, you pay the entire purchase price of a vehicle over the life of the financing plus interest. But lease payments are calculated a little differently. Instead of paying for the entire value of the car, the monthly payments cover the vehicle’s depreciation (plus rent and taxes) over the lease term. Down payments for a vehicle purchase can run up to 20%, but a lease often requires little to nothing for a down payment. As lease terms are so short, most repairs will be covered by the manufacturer’s bumper-to-bumper warranty. Why should you always lease a car? In some cases, the manufacturer will cover maintenance costs. When reviewing the lease agreement and warranty or maintenance agreements, be sure to understand what repairs and maintenance are covered to avoid unexpected vehicle service bills. Car leases usually last between 24 and 48 months. Because lease terms are relatively short, you can drive a new car with the latest technology and safety standards without the commitment or hassle of trying to purchase or sell the current one when it’s time to upgrade. Once the lease ends, you simply return it to the dealership, choose the next vehicle, and sign a new lease. Leases often include an option to purchase at a predetermined price. You may choose to execute this option if you love the car or the purchase price is less than its value.
On the other hand, you can walk away if the purchase price is more than the vehicle is worth. Leasing a car, however, opens the door to more expensive models and trim packages since it typically comes with a lower monthly payment for the same vehicle. This gives you more flexibility with vehicle options so you can choose the one that best fits one’s lifestyle.