The ideal leasing customer will meet a few important prerequisites and want a few key things out of the arrangement. First of all, someone who wants to lease a car should have solid credit. This is perhaps the first and most important of all things because leasing requires a higher credit rating than buying. If you have great credit and need to save money for a couple of years, leasing will help you accomplish this.
Why you should car lease
Here’s a very short list of the wonderful benefits of leasing a car. These benefits will endure for as long as you lease the car and begin with the car itself. Far too many people settle for a subpar car just for the sake of owning it. While you can modify and improve a car you buy, the payments are often so high that you won’t have enough leftover cash to turn it into the car of your dreams.
1. Lease to drive the car of your dreams: Everyone has that “one car” they would do almost anything to get their hands on for a few years. Leasing a car makes it a possibility for you to have this car you’ve been dreaming of without having to go broke to do it. That’s because the payments on a leased car won’t be as much.
2. Low monthly payments: Leasing payments are determined by depreciation values over the years you’ll drive it, your credit rating, money factor, and of course, price of the car. If you’re dreaming big on the car of your dreams, you might still have a substantial monthly payment but it will be more affordable than payments on a purchased car.
3. More reasonable taxes: When you pay taxes on a new car, you’re paying much more than you would on a leased car. In comparison, leasing taxes are very affordable for people on a budget.
4. Free up money for other goals: Some folks just want a dependable car to drive, albeit a car that looks great. If you’re one of these people, saving money on down payment and monthly payments give you more income that can go to better food, a great vacation, or perhaps a new wardrobe. It’s up to you. If you want to have short-term cash on hand to blow on yourself, then leasing is a terrific idea.
5. Lower repair bills: Repair bills are the Achilles heel of owning a car. They can translate into thousands of additional dollars on the price of the car, so that even an economical purchase will rack up a huge repair bill over the years and render the car a poor choice in the end. With a leased car, you have reliability on your side. It will usually be under manufacturer warranty, meaning that if the car breaks down you’re taken care of for free or near free. This is great news that leasers often point to when people ask, “Why did you lease?”
When not to lease
No form of nabbing great transportation is going to be without its short list of down sides. For leasers, it will be the need to drive more than the average car owner. That’s because when you lease a car, the agency gives you set miles. If you drive over this mileage over the course of the lease, you’re going to pay a fee for every mile over. This can quickly eclipse all of the financial benefits of leasing and make it unrealistic. Don’t forget to take your driving habits into consideration before rushing out to lease.
Your credit score can be another factor which makes you a bad fit for leasing. Leasing requires a better credit score than buying does, so if you are on the short end of the credit scores, it might not be a good idea to lease.
Other than this, there is always a strong encouragement to lease. While you won’t gain equity in the vehicle over time and you won’t own it at the end of your payments, you have all of the regular benefits of driving a much better car for a lower amount of payments over the course of time you have the car. If you just want a great car, you have good credit, and you want to save some money for a few years, then leasing is an excellent decision to make.
Leasers report great satisfaction with the financial benefits of leasing and typically report that they’re happy with the experience. This is because the short-term nature of the agreement makes it difficult to argue that it’s not a great thing. You’ll have better transportation, lower monthly payments, and less strings attached to a leased car than you would if you bought a car and got tied down with it over the years.