When shopping for a new car, many people struggle with the decision between leasing and buying. While each option has its pros and cons, sorting through the differences can be a hassle. Here are the top 5 reasons you should lease a car instead of buying one, so you can understand what works best for you.
#1 Always Have the Newest Vehicle
Typical lease terms are about 3 years. After you’ve completed your lease you have the option to buy the car or start a new lease with a new vehicle. This means every 3 years you can get the newest models full of fancy technology and features without having to do anything extra. Those who lease are able to upgrade their cars much faster than those who buy. Typical car buyers will need to keep the same vehicle for at least 5, but closer to 10, year in order not to lose money getting a new car.
#2 Peace of Mind
Leasing a vehicle means your car will be very new, usually brand new. This means you are less likely to have to worry about maintenance problems, mechanical issues, or other wear and tear found in older vehicles. Peace of mind is knowing that you can simply get in your car and go without wondering if you’ll have a problem with the car. Car buyers will have to deal with high mileage, maintenance, and unforeseen problems as they appear. As leases usually involve dealer maintenance programs, you can rest assured that your car will not become a burden while you lease.
#3 More Options and Variety
If you’re the kind of person that likes variety, leasing may be the option for you. As leases usually run 3 years, that means you can switch to a completely new vehicle every few years. After you’ve tried a sedan, you might be interested in an SUV. Maybe you’ve stuck to one brand of cars for a while, but now want to try something different. Leasing provides you with flexibility and options, whereas buying a car is a more long term and set decision that isn’t as flexible.
#4 No Depreciation
Everyone wants to know the bottom line price. Leasing has huge advantages over buying in that you, personally, do not suffer the depreciation of your car’s value. Buyers can immediately lose up to 50% of what they paid for a car as soon as they drive it off the lot. Leases do not need to worry about selling their cars at all as they simply return them to the dealership after their lease is over.
#5 Better Tax Breaks
Tax breaks are great for those who lease. If you own a business, you can not only write off your mileage and travel expenses, but the lease itself is a business expense. Car owners receive fewer tax breaks and less incentives than leasers. Taxes themselves are lower when you lease as you only owe a percentage based on your lease rate. Car buyers pay taxes based on the total price of the vehicle, which is often several times more than the monthly lease price.
Being able to upgrade your vehicle every few years, having the peace of mind of a new car, and not losing money from depreciation make leasing a solid option. Whether you’re a first-time car buyer or need a vehicle for your business, leasing a car provides numerous advantages over buying.