Contrary to popular belief, paying cash or taking out a loan is not the only option when it comes time to get a new vehicle. Although leasing a vehicle used to be only reserved for people who were wanting to buy a luxury vehicle, it is now possible to lease almost any type of vehicle. From college graduates to single mothers, many people are taking advantage of the benefits that come with leasing a vehicle. With the constant increase of vehicle prices, many people are opting to lease. Today, leasing accounts for a large portion of all vehicle sales.
Many people have to rely on car loans when it is time to finance a car; however, leasing gives additional options to getting the vehicle desired. When drivers opt to lease their vehicle, they are able to afford more expensive vehicles. This is because the monthly payment will be lower. This is especially good for new college graduates or people on a fixed income. This will allow them to get a dependable car, but they will not have to pay the huge car payments that often come with new vehicle purchases.
Leasing does offer some similarities to financing a vehicle. When purchasing a car, the loan will have to be for the entire cost, and it requires a significant down payment in order to get the monthly payment to an affordable price. With leasing a vehicle, the entire cost is not financed. In fact, only the depreciation of the vehicle is financed. Most leases last for about three years, and when the lease is up, the driver simply has to return the vehicle back to the dealership.
Leasing a vehicle is often less expensive than financing a vehicle. The only time financing will be cheaper is if the driver puts down a significant amount of money for a down payment or if the trade-in gets a high value. This usually does not happen. However, with leasing, the driver is only paying the depreciation, and this means that the driver only has to pay the difference between the car’s actual value and the value at the end of the lease. This type of deal is very attractive to many buyers.
When trying to determine if a lease is the appropriate way to get a new vehicle, it is important to look at different numbers. For example, if you are looking to purchase a new sedan that costs $20,000, you will need a down payment. If you are only able to put down 20%, which is $2,000, then you will have to finance $18,000. However, with a lease, there will be a predetermined residual value, and this will allow the lease’s monthly payment to be much cheaper.
When there is only a small down payment for a new vehicle, leasing will usually be the best option. Similar to purchasing a vehicle, leases do require money up front; however, this is usually as not as high as the down payment for purchasing a vehicle. However, if you put more money down up front, the monthly payment will be lower.
Leases are great ways to car ownership. Most warranties on vehicles only last about three years, and most lease terms are only about three years. This means that the vehicle will be covered for repairs or mechanical failures that may occur. Also, in many cases, the oil changes, tire rotations, and other maintenance will be free. It is important to always keep the maintenance up-to-date with a lease. Since you do not own the vehicle and will have to return it at the end of the lease, you must be sure to keep the vehicle in good condition.
Leasing is a great way to get a vehicle, and if you are someone who enjoys having the newest vehicle with the latest safety features, then leasing is the best choice. You will be able to get a new vehicle every few years, and because of this, you will always have the best features in your vehicle. Additionally, selling the vehicle is not something that you will have to do, and once you are done with the lease, you simply have to return it and move on.