Before you sign a contract to purchase a new car, ask yourself if you’d consider a lease instead. It’s a big decision to make, but not for the reasons so many people assume. It’s a big decision because it means going outside your comfort zone. Many people grow up with misconceptions of leasing, and they’re not always favorable misconceptions. Since it’s increasing in demand, many consumers are learning rather quickly just how little they really know about leasing. The benefits are numerous.
– You save money
– You drive the car you want
– You get a new car every few years
– You never worry about trade-in value
– You always drive a safe and reliable new car
It’s an old-fashioned opinion that always having a car payment is a bad thing. Most people have no problem always making a car payment to a dealer when they get a great car for such a low monthly payment. Those who like to keep their cars for many years can even understand the desire to drive a new car with a lower payment rather than an old car that’s not always reliable.
The Savings are Substantial
Driving a $60,000 car off the lot means you’re paying $60,000 for a new car. You might finance it for five to seven years, and you might decide after three or four you’re doing driving it and want a new car. You worry then if you owe more than it’s worth and whether you can find a dealer willing to give you what you owe on the car. It’s expensive to own a car outright, and that expense usually begins prior to the payments ending and the car becoming yours.
Leasing eliminates this problem. You can drive a $60,000 vehicle off the lot for around $15,000. The depreciation your car experiences is all you pay. This means you get a much lower payment, you’re not paying the same in sales tax, and you’re not paying all those dealer fees. You also don’t worry about trading it in eventually for what it’s worth. All you do is buy the car, take it home, and turn it in when the lease is up so you can choose a new car.
The Choices are Limitless
Buying a car and keeping the payment at an affordable amount is difficult. When you lease, you can choose from almost anything you can imagine. What might be a Toyota budget when you buy a car becomes a Mercedes Benz budget when you lease. You might even get that luxury car for less than you would buying a non-luxury car outright. It’s cost-effective, and the many options you have when you choose to lease make the game that much more exciting. You get to drive what you really want to drive, and that’s what more people want these days.
The Commitment is Minimal
When you spend so much money on something you know you’ll never recoup when you sell or trade, you want to be sure you have precisely what you want. The commitment is a big one. You take such a big hit on this car, you want to be sure it has everything you want and need. When you lease a car, you get to have all you want and need, and you get to commit to the car for a short period of time.
Take your last three cars into consideration. How long did you have them? It’s safe to guess you probably had them somewhere between two and four years. You probably never paid them off, but you probably always struggled to turn them in. This is a problem many people face, but it’s not a problem you must live with when you lease. You know how long you like to drive a car before you’re tired of it, so you get to lease that long and get a new car when you’re good and ready.
Leasing is an option more people are taking into consideration as the benefits are more substantial. Financial gurus and your old-fashioned parents might frown upon the idea of you making a car payment for the rest of your life, but it’s not something millennials have an issue with. The payment is low, they get what they want, and they get more than they can afford to purchase if they went that route. It makes the game much more exciting for consumers to lease.
If you’re still not convinced, ask the finance person at a dealership to present you with both options the next time you shop for a car. It’s easier to understand in writing just how beneficial it is to lease a car rather than buy a car.