Buying a car is anything but a one-size-fits-all approach. Some people want cars while others want trucks. Some desire brand new cars while others want a used one. Ultimately, one of the most important decisions to make is whether you want to buy a new vehicle or choose to lease it. Carefully consider both options to determine which is most appropriate for your needs and wants in a vehicle.
Car Leasing Pros
1. Lower monthly payment – A lease only requires you to pay for the car’s depreciation instead of the entire cost, meaning you’re saving hundreds per month with a payment that is easier on your wallet
2. Lower down payment – Leases are attractive if you don’t have a lot of money to put down right away, especially since there are new offers constantly being put on the table to sign and drive with little to no money down.
3. Predictable ownership costs – A typical lease lasts for three years and the car is covered under the manufacturer’s bumper-to-bumper warranty, meaning there are less out-of-pocket expenses. The only things you’re responsible for are regular maintenance such as oil changes and tire rotation. Some leasing programs include free maintenance programs built right into the agreement to lower your overall costs even more. You’ll bring the car back to the dealership before the warranty runs out and escape pricey repairs that tend to start accumulating as the vehicle ages.
4. Latest and greatest – A lease gives you the option to drive the newest vehicles when they come out and return them when the next best thing arrives. A lease ensures you’re driving something different every few years so you don’t get bored with something you’re stuck paying off in full. You’ll also know that what you’re driving has the newest safety features and technological upgrades.
5. Buy-out option – Leases offer you the option to buy the vehicle at the end of the lease. This amount is pre-determined at the time you sign the lease, meaning if the vehicle has increased in value you could come out better financially than you thought. The other option is to return it and pick something new to ride in for the next few years.
6.Tax deduction – If you use a leased car for business purposes you may be eligible for a significant tax deduction to reduce your overall burden for the year.
Cons of leasing a car
1. Mileage limits – Leases include mileage limits that you must adhere to during the term. Every mile after this limit of 12,000-12,000/year typically incurs a penalty of 15 cents per mile, which means you might want to re-consider a cross-country trip in one.
2.Modifications are limited – You will be charged for cleaning and damages when you return a leased vehicle and are also limited in customization options during this time period. Keep it clean and you’ll be able to walk in with the old and leave with the new.
3. Always making payments – A lease locks you into making payments since you never own the car. This is an appealing alternative to paying thousands to repair a vehicle you bought and are still making payments on.
Carefully evaluate your needs and wants in the car buying process. You may discover that the benefits of leasing a car instead of buying a car steer you in a different direction than anticipated.