After buying a second-hand vehicle, (really it was fourth-hand!), I vowed that the next car I would buy would be a new car. I had so many costly repairs with my fourth-hand Cavalier that the idea of having a new car that wouldn’t require repairs for several years really appealed to me. But my perspective was skewed and I didn’t ever consider leasing a car.
I have since learned that when you are in the market for a new car, leasing a car is a great option to consider. While many people prefer to buy their cars outright as I did, there are advantages that come with leasing a car as well. When you are considering getting your next car, there are a variety of leasing benefits and advantages of which you should be aware. Here are just a few reasons why you might contemplate making the leap over to car leasing.
One of the main advantages that comes with leasing a car is there is great flexibility. When you own a car, you are committing to a vehicle for a long time, and while you can always sell a car at the end of its tenure, it will likely depreciate a large percentage in your first year of ownership. In fact, research shows that a new car can drop up to 20% in value after the first 12 months of ownership. This can make it hard to sell your new car and you could be stuck with the vehicle and a large loan balance. When you lease a vehicle, you will have a term of two to three years. This will provide you with the ability to get a new car every few years without feeling stuck in a long-term commitment.
Drive Newer Cars
Leasing is also better because you get to drive brand new cars more frequently. When you lease a car, you will always get a brand new vehicle that is built with the top-end finishes and technology. This can make driving a car a very fun and exciting experience, unlike owning and buying a car, which likely will require you to hold the same car for a period of time before trading it in for something newer.
Save on Monthly Payments
For many people, leasing is also more advantageous because you will be able to save money on monthly payments for a comparable vehicle. In the majority of situations, you will be able to get a deal leasing your luxury car that includes a monthly payment no more than half of what you would pay if you were to buy the same car and take out a loan. For those that do not want to commit to a vehicle for a long period of time, leasing often results in a substantial amount of savings over time.
Lower Maintenance Costs
Finally, when you are looking to save money on your monthly payments, you will also have lower maintenance costs with your leased vehicle. When you are looking to lease a vehicle instead of buying one, you will normally get a maintenance package for a period of time. Also, since the leased cars are newer, they are likely going to be in better overall condition and will not require the same upkeep as you would if you were to buy a car and hold it for a longer period of time.
Yes, ownership will always have its place in the auto sales industry, but increasingly, experts are coming around to the benefits of leasing. For the above-noted reasons, you might consider making your next vehicle a leased one.