Is leasing a car better than buying a new one? Leasing has become a popular option, with more and more people considering a lease rather than ownership. It makes total sense to lease as you aren’t forced to deal with a depreciating investment and you pay less in terms of mechanical maintenance and monthly service fees.
A good rule of thumb in financial matters is that you should buy items and investments that go up in value over time, and rent out or lease items that go down in value. This applies to owning versus leasing a vehicle- you wouldn’t want to put too much money on something that goes down in value as soon as it rolls off the dealership. Leasing frees up your finances for the more important things.
Shopping for a car lease is different as compared to buying a new car because you’re getting a lease from brokers or independent companies rather than going to a dealership. As such, finances from dealerships will not be a big issue here. Shopping for a lease is a relatively easier affair as you won’t have to go around car companies and shopping for the best deals, or looking on the web and calling representatives on the phone for hours on end. In short, you escape the monopoly and the fact that these dealers will promise the best cars but may not really deliver in the end.
Most of the time you can choose to get new cars that are more reliable and come packed with the latest car safety features, which means you won’t have to worry about your car breaking down due to worn out vehicle parts. Having to pay for upfront costs such as AC units, batteries or timing belts are out of the picture since there’s less chance of your car malfunctioning during the first few years of its life.
A vehicle lease for 36 months usually comes in with a bumper-to-bumper warranty all throughout. Aside from avoiding costly part replacements, maintenance is hassle-free and are sometimes included in the contract.
One of the best parts of having a lease is that you’ll have an idea of how much your monthly vehicle costs will be. Monthly expenses will include insurance, fuel, breakdown cover and road funding license. You also have the option to get a maintenance package from your broker or dealer, which further drives down car spending and increases overall financial flexibility.
Leasing guarantees that you’ll be driving the latest vehicles which come packed with the latest technology and safety features. This can make driving a much more enjoyable affair, especially if you’re leasing a family car. You get Autonomous Emergency Braking for car crash prevention, night vision and MirrorLink, an app that displays your mobile phone screen onto a compatible dashboard. Repeat this every 36 months or 3 years and you’ll have the best features without having to update and upgrade with a bought car.
How many times have you worried about not being to make it to the airport to that important meeting because you’re driving a 10-year old vehicle? You won’t have to deal with the stresses and anxiety of breaking down in the middle of the road when you opt for a lease.
The longer you have a car, the more unsafe and unreliable it becomes. You won’t have to deal with this issue when you decide to lease as you’ll be driving a new model every 3 to 5 years. You can be sure that all the parts are new and they won’t give you any trouble in the first years or so. And in the rare cases that you experience a breakdown, you won’t have to pay out-of-pocket as it will be covered by warranty.
Would you believe that you’ll have an exotic car in the end if you choose to lease rather than buying a brand new vehicle? This is because, in a lease, you’re only paying for the depreciation costs as compared to the total value of the car. Lower monthly payments translate to lower, more affordable financial overhead, freeing up more money for those trims, options or even a better make or version. Models that were too expensive to buy before will become a viable option on a lease, increasing your overall car experience.
With a lease, you can choose to either put a low down payment or have the costs roll over to your monthly fees. This is a good option for those who need to drive for family or business but don’t have the down payments for a new vehicle. Sure, you can opt for a zero money down on a new car, but the monthly payment goes up and the interest rate will, too. The minimum recommended down payment for ownership is at least 20 percent in order to get a good car loan rate you can work with.
Buying a car and having an accident with it will diminish the vehicle’s overall value. While it’s true that insurance will cover the damages, your car won’t be as valuable when it comes to selling it in the future. When you lease a car and wreck it, insurance still pays for the damage but you won’t have to suffer a diminished car value because that’s the broker or dealership’s problem.
Consider leasing as an alternative to buying a new car because it has many benefits as compared to ownership. You get better value for your money, fewer headaches, less stress and more time for the more important things in life.