Buying and leasing cars are the two most common ways of securing cars for personal usage. Car leases, despite their lower overall price, feature several benefits that buyers are not subject to. Detailed below are a few of the heaviest benefits car leases offer that purchasing vehicles does not.
Lessees are not responsible for repairs and maintenance
Maintenance and repair are two expensive, time-consuming aspects of owning cars that many car buyers fail to consider. Lessors, those who own leased vehicles and receive payments for leasing them, are responsible for paying for and actually performing necessary repair and maintenance.
Properly repairing vehicles requires expertise, experience, know-how, and proper equipment. Most car owners, or people in general, do not possess such resources to appropriately repair vehicles.
In the event a lessee’s car breaks down and they do not have time to wait on repairs, dealerships often allow lessees to drive a car of equal or greater value. Upon successful completion of repairs and upkeep, lessees are returned their original leased vehicle. Additionally, leased vehicles are required to be subject to active warranty. Lessees are usually fortunate enough to have their vehicles subject to both manufacturer and dealership warranties.
Car buyers, on the other hand, must pay and administer necessary repairs themselves, or be faced with vehicles that do not operate correctly or at all. Car buyers also are not provided replacement vehicles to be driven in the interim while repairs are taking place.
Lessees never worry about reselling their cars to recoup costs
Lessees are required to resubmit leased vehicles upon lease term end to their lessors. Car buyers keep their vehicles indefinitely. Many people look at being able to keep the vehicle forever as an upside to purchasing, although it is not always a benefit.
Lessees are fortunate enough to never deal with the stress, worries, and time that comes with reselling a used vehicle. Car owners typically attempt to resell their used vehicles after a few years because they are either tired of their vehicle, want to recover part of prices paid for them, or both.
Most often, used car buyers seek out sales prices below market value. Many prospective used car buyers either do not reply to fairly priced vehicles. In nearly every case they do reply to used car advertisements, they offer lowball or disrespectfully low offers for car buyers’ vehicles.
In order to receive enough interest in car owners’ used vehicles, they typically must create advertisements in multiple markets, sometimes tens of markets. While some advertisements are free to place, most cost money. The placement and reposting of ads in multiple markets requires the payment of fees to advertise. Car owners must create advertisements, pay someone else to write them, and take attractive pictures of their vehicles. This process usually takes weeks, if not months, tacks on stress to car owners’ lives, and costs money, too.
Lessees get better deals on their vehicles
Most people who drive new or recently-made vehicles drive them most directly after purchase. As years go by, most car owners tend to drive them less. Car leases only last between a few months and five years, maximum. Ownership of vehicles lasts indefinitely, or until their owners sell their vehicles.
Lease payments are based on how much wear and tear is placed on vehicles during their lease terms. For example, if a vehicle is worth $20,000 prior to a lease and is expected to be worth $9,000 at the end of the lease, the depreciation throughout the lease is approximately $11,000. The lessee would pay $11,000 plus interest to lease that vehicle.
Conversely, car buyers would pay $20,000 for that same vehicle. As drivers get the most satisfaction out of cars in the first few years of driving them, it makes sense to lease instead of buy. Car buyers pay more than lessees only to have their now-old vehicles sit in driveways, require constant repairs, and not operate as smoothly as before.