Many consumers live with old misconceptions of car leasing. Do you live with the belief it’s only for corporations because they must buy a large quantity of vehicles for their employees? Do you live with the belief it’s only for the wealthiest of the wealthy who simply want a brand-new car every year so they remain relevant? Do you live with the belief it’s not beneficial and it’s more expensive for the average consumer to lease a vehicle? If you believe any of this, you’re wrong. It’s true corporations lease cars because it’ beneficial. It’s true wealthy people might decide to lease, but it’s also true it’s affordable and beneficial for all drivers. It’s not elitist, and it’s certainly more beneficial than buying for almost all consumers.
Leasing vs. Buying
– Leasing a car means you get a new one every few years
– Buying a car means you get to own your car outright one day
– Leasing means you get to drive a more expensive car for less
– Buying a car means you pay more monthly for less expensive cars
– Leasing a car means you never run out of warranties
– Buying a car means your warranties will expire before you own it outright, and this leaves you responsible for paying out-of-pocket for any repairs your car needs
– Leasing means you get to take your car back free and clear for a new one when the lease is up
– Buying means trading in a car that’s not worth as much as you owe, which leaves you in a negative financial situation when you need or want a new car
It’s easy to see leasing is a much more beneficial option for anyone who wants to drive a nicer car, maintain a low car payment, drive with the knowledge your car will never give you major problems or that they’re covered under warranty, and you get a new car every few years. The big downfall of leasing is the mileage factor, and this is when you might consider buying. If you drive long distances and put more than approximately 15,000 miles on a car each year, leasing is not a good option. For everyone else, it’s the best option.
Borrowing vs. Owning
The biggest debate surrounding leasing vs. buying is a simple one. You get to own your car when you buy it. Leasing is a form of borrowing or renting a car and being required to return it in a few years. This might not seem like a great option until you ask yourself one question. Have you ever owned a car outright? Have you ever bought a car and paid five or six years worth of payments so you could own it outright? Most people don’t. Most people try to trade in their car within three or four years of buying it, and they find that it’s just not worth what they owe.
If you are this person, it’s a nice option to lease. You get to have that new car you want every two or three years without financial stress. You don’t owe anything on your lease when you turn it in if you stay within the realm of your lease agreement, which means you’re not rolling over the remainder of what you owe on your car into the payments you’re making on a new car.
Unless you drive 20,000 miles per year on average, you’re going to find leasing is a much better solution thanks to the fact it’s not permanent, and it means you have more options and freedom. Leasing is good for anyone who wants to have new cars, comfort, and big savings. It’s nice to know you can lease a Mercedes for the same amount or less than you can buy a Toyota.