If you’re wondering whether you should buy or lease your next car, why not get to know a few of the benefits associated with leasing? Chances are you are familiar already with the concept of buying and how that works, but you probably have a few common misconceptions abou the leasing process. It’s easy to become confused, to not fully understand what it entails, and to wonder if it’s the right decision for you. If you are considering a leased vehicle, you should know the only time it’s not conducive to your lifestyle is if you drive many miles each year. Leasing does require you keep mileage low, even if you pay to raise the mileage limit annually.
If you can keep your mileage at or below around 15,000 miles per year, you might consider leasing a better option for your budget. It’s not only easy to lease a car today, it’s also much easier to buy new cars in the future when you lease. The lease process removes the hassle you face when you buy a car now and in the future, and it comes with a long list of other great benefits as well.
You Have More Options
Perhaps you have a large family and want to drive a full-size SUV but can’t fit the price of a new one into your budget. You could buy a used one, but that puts you at the risk of not knowing what someone else might have done to that particular car. If you can’t predict how well someone kept this car, you might not be able to predict how much you’ll spend on repairs if it’s not perfect. When you lease a car, you can buy that brand-new full-size SUV because it now fits into your budget. You can buy a luxury car, a car you never thought you could afford, and you can even buy your dream car when you lease.
You Pay Less
There are so many ways you pay less when you lease a vehicle. You pay less sales tax at the time of purchase. You aren’t required to make such a large down payment. You get to forgo the many fees associated with buying, and you don’t pay full price for a brand-new car. Instead, the dealer considers how much the car depreciates when it drives off the lot versus what it’s worth when you return it. Because the dealer is in charge of how many miles you’re permitted to put on the vehicle, they have a fairly good idea of how it will come back when the lease is up.
This allows them to determine the value of the vehicle when they get to sell it, which helps them figure out how much you pay now. This means you get to pay a lot less. Say you decide to purchase a $50,000 vehicle and the dealer decides it might depreciate around $15,000 in the two years you’ll have it. This means you’ll pay about that much rather than the entire $50,000. This is precisely why so many people can lease a vehicle they cannot afford to buy without going over their budget.
Trade-In is A Breeze
The most stressful part of buying a new car is trading in your old one. It might not be worth as much as you owe, which means you either pay it off yourself or you put down a lot of money. If you can’t afford to do that, you might find yourself rolling over what you still owe into a new car. This makes it more expensive, and it means you’re still paying for a car you no longer drive. When you turn in a lease, it doesn’t matter what it’s worth. You get a new car without worrying about how much is owed, the value, or anything like that. It’s easy and affordable.
Leasing is still a new concept to many people who’ve yet to consider it a viable option in their own lives. It’s certainly not a new concept, but it’s also not one that people remember to take advantage of when they are in the market for a new car. Now that you know how it might benefit you, it makes sense to see what you can afford.