One of the biggest issues with getting a new car is the cost. New car costs have steadily increased over the past few years, and it’s hard to find even an economy car for less than $20,000. That can make it hard for many families to afford to buy a new car. However, there is another option. Leasing a new car can much more affordable, and it has a number of advantages over buying. Here are some of those advantages, as well as a few of the drawbacks to leasing.
Lower monthly payment
The fact that monthly lease payments are lower than monthly payments when you buy is the biggest advantage of leasing over buying. Because you are essentially renting the car for a few years, you only pay for the portion you are using. In most cases, that means monthly payments that are tens and even hundreds of dollars lower each month than they would be if you buy. If you have a fairly tight budget, that can make a huge difference.
No maintenance worries
When you lease a new car, the lease period usually is two to three years, which means the car will be covered under warranty the entire time you own it. That means you won’t have to worry about being hit with an expensive repair bill on the car, and it also means you won’t face other long-term maintenance costs such as getting new tires or having transmission and brake fluids changed. Some lease deals also involve free oil changes, so you could save money there as well.
You get the latest features
Technology is advancing so rapidly these days that even a car that is a couple of years old can be outdated. One of the often-overlooked advantages of leasing is that you can get a new car every two or three years, which helps you to always have a car with the latest safety, comfort and entertainment technology.
No hassles trying to sell a car
When you own a car, you are faced with having to sell it or trade it in when you no longer need it, which can be a long, complicated process involving a lot of negotiating. However, when you are done with your lease, you simply return it to the dealer, sign some paperwork and can move on to your next car.
Leasing does have some disadvantages that you need to consider before deciding whether it is the right choice for you in your car search. One of the biggest drawbacks of leasing a car is the mileage restriction. Most leases allow either 10,000 or 12,000 miles per year, which isn’t a lot, especially if you travel a lot or have a long commute. There can be very large fees for going over the mileage, so you have to give serious consideration to whether you will be able to stay within the mileage restriction. Other drawbacks to leasing include having to keep the car in very good shape and the need to get a new car every two or three years.
When comparing leasing and buying, many people come to the decision that leasing is a less-expensive way to get a new car. The advantages far outweigh any drawbacks, making the decision on whether to lease or buy a fairly easy one.