These days, leasing a car is all the rage, and why not, right? You can get your hands on a new set of wheels every couple years, before your car goes out of style and begins wearing down. Of course, there are cons as well, but for a moment, let’s focus on the positives.
It’s tough to stay committed, isn’t it? Whether it’s a new diet or an exercise regime, sticking with something over the long term is never easy. The beauty of a lease is that the timeframe is limited, often just two or three years. Once your lease expires, you can simply take the car back and get something else. Or, if you still love the car, you can make an offer to buy it outright.
Leasing a car is expensive, but not as expensive as financing one. If you compare an auto loan to a lease, you’re going to end up paying a lot less each month with a lease, any way you slice it. How much you save and whether it’s a good deal or not is another story, but the actual amount of money out-of-pocket each month will almost certainly be lower with a lease. This also means you can get your hands on a more expensive car that you may not be able to afford outright, not that it’s recommended…
Less Spent on Maintenance
We all know that the longer you keep a vehicle, the more problems you run into. It’s like anything else, the older something gets, the greater the chance of breakdown. The same holds (very) true with a car, and because leases are limited, more often than not you should be able to avoid any major maintenance costs. Further, any issues that do come up should be covered by the warranty on the vehicle because of its young age. Always be sure to ask if the dealer covers general maintenance, like scheduled oil checks and service. It’s definitely a plus if they do, as these costs can add up.
Smaller Down Payments
With many leases these days, you can come in with zero money down and still get a relatively low monthly payment. And even if you do need to come in with some money down, it will generally be lower than what you’d put down if you were buying the car outright or getting a loan. If you’re short on dough, it may make sense to keep more of it in your pocket and make larger monthly payments as necessary for your situation.
You Don’t Have to be a Salesman
Once you’ve decided to purchase a new vehicle, you may be thinking about trading in your old car to put against the value of the new one. But dealers never offer very good, let alone, fair deals, do they? And if you decide to sell it on your own, you’ll have to deal with associated fees and the headache that goes along with selling a car. Who wants to be a salesman? With a lease, you simply take the car back in at the end of the term and wipe your hands clean of it.
When you lease a car, you only pay sales tax on the portion of the car’s value that is used during the lease period. Dealers determine what percent of the car’s value is used during the lease term, and you pay tax on that portion. Additionally, you pay the tax over time, instead of upfront, so the out-of-pocket costs are minimized and spread out over the term of the lease.