here’s pros and cons to everything in life, and buying a new car versus leasing a new car is no exception. You get a lot out of both, and it all depends on what you want. For many people, buying seems like the obvious choice. The common thought is you get to buy your car and keep it, while leasing means you always have a car payment. The reality for many people in this day and age is you will always have a car payment regardless. You might think buying means you can pay off your car and live without a payment, but fewer people are doing this these day. Many consumers want a new car before they’ve paid off their current vehicle, and this means you end up paying far more.
Unless you put tens of thousands of miles on your vehicles each year, buying is rarely the better option. You do get to purchase your car. You do get to put as many miles on it as you’d like. You do get to drive it as long as you’d like. You also get to pay full price, you have to pay for your own repairs when your warranties run out, and it’s more difficult than ever to trade in a car you owe money on unless you had a great trade-in or made a sizable down payment to cover the cost of depreciation. Buying isn’t always the best option, which means it’s time for you to learn more about the benefits of leasing.
Bye-Bye Down Payments
Forget walking into a dealership and putting thousands of dollars down on a new car. It’s time for you to keep your money in the bank where it belongs. Now is the time to go into a dealership to buy a new car without putting any money down. If you do need to make a down payment, it’ll be a small one. This means more money in your pocket and less into a vehicle you don’t get to keep forever.
Hello Better Car Options
Your buying budget might be a little bit small, but your lease budget is a lot bigger. Most consumers are more concerned with monthly payments than they are the overall cost of a new car, and there is nothing wrong with that. When you walk into a car dealership with a budget of $600 per month to spend on a new car, you have so many more options with leased vehicles. That budget might get you a new minivan or a new sedan without a luxury logo if you buy. If you lease with that kind of budget, you get to drive home in a brand-new luxury SUV you never thought you could afford. Suddenly all those dream cars are well within your budget, and it makes shopping more fun.
Getting A New Car is a Breeze
Say you buy a new car. You drive it off the lot and it immediately depreciates $15,000. You spend $50,000 on this car, but it’s worth $35,000 when you get it home that first day of ownership. Two years later when you decide you want a new car, you have a car worth around $30,000 and you still owe $40,000 on it. That makes you $10,000 upside down. Do you pay that money off yourself or do you roll that $10,000 into a new car? Do you just keep your car for a few more years and hope the value doesn’t drop too much more in the meantime so you can buy a new car?
When you lease, you get to drive off the lot and not care how much the car you have depreciates. When your lease is up, it doesn’t matter how much the car is worth. You owe nothing else on it, it’s free and clear going back to the dealer, and you automatically get a new one with a new lease. You don’t put anything down. You don’t roll excess funds into a new car. You are free and clear to drive a new car every few years without the stresses of trading one in and finding out it’s nowhere near what you owe on it.
Leasing is a good option for so many buyers, and that’s why you should ask to see what you get from both situations the next time you go into a dealership. You’ll be surprised just how much you get with a lease, and for how little you get it.