It’s usually a headache shopping for a new car. Sticker shock takes you by surprise, and it’s a bit depressing knowing your new car just depreciated in value as you drove it off the lot. So you’ve found yourself considering leasing a new car, but you’re wondering if it’s a good idea.
When you buy a car, it’s yours to deal with for the long term. With a lease, you’re basically paying to use a vehicle that is owned by the lessor, and you don’t have the hassle of securing a loan to finance it. In essence, leasing is like a longer term car rental, where the burdens associated with the car belong to the lessor, not you.
Leasing Saves You Money.
-Less Initial Costs
Because of rising retail costs, leasing is a way to get the car you want without breaking your budget. No down payment is necessary, just your first month’s payment, a security deposit, some fees and taxes. You’ll drive off the lot in a new car without the headache of a lengthy financial burden. Another way to save money is on the amount of your lease payments. Because your monthly payment depends on the car’s value, you can save money by choosing a car with a lower retail price tag.
-No Repair Costs
Since leased vehicles are always under warranty, you’ll have no out-of-pocket costs should your leased car need to be serviced or repaired. Fortunately, a lease usually ends before any repairs would be necessary.
Leasing Benefits You in the Long Run.
-No Worries About Selling
Let’s face it; used cars can be challenging to sell. With leasing, you don’t have to find potential buyers for a used car that has depreciated in value. If you haven’t maintained a strict servicing schedule, then your vehicle will be even harder to sell. It might feel great to purchase a new car, but after years of use, it won’t feel so great trying to sell it. The wonderful thing about a lease is you still get to feel great driving away in a new car, but you won’t have to deal with selling it.
-Walk Away or Option to Buy
After you’ve bought a car and finally paid off the loan, you’ll have a title and a used car. When a lease ends, you simply walk away. But if you really loved that car, you’ll usually have an option to buy it. You’re not stuck with a used car, and you can lease another new car without the entanglements that come with buying one.
An important thing to know with leasing is that mileage is set. Your lease comes with an allowance of miles per month, and a fee is charged for overages. Make certain you understand what your mileage allotment is and the amount that will be charged if you need to go over it. You know what your mileage needs are, so just make sure you are fully aware of the monthly mileage policy on your lease.
Now that you know more about leasing, you can see how beneficial it is to lease rather than buy. Once you’ve leased a car, you’ll never want to buy one again.