Top 5 Reasons Why Leasing a New Car is Better than Buying One
A lot of car buying blogs will do their best to try and convince you to buy a new car rather than lease one. If you have the cash flow, a secure income and solid five to ten year plan, then sure, go right ahead. And sure, some of these articles definitely make a few good points about purchasing, but we think most people would be better off leasing a car. Here are our top five reasons why we think you should lease:
- You have the freedom to drive a shiny brand-new car, a different car, every couple of years
You love cars. You love the thrill of the drive. Cars have their own personalities, their own feel. That’s why there are so many different options available on the market, with improved models and unique features being added to cars each year. Instead of being locked into the exact same car for years, potentially decades, with leasing a car, you have the ability to drive different cars throughout your life rather than being forced to drive the same one, year after year. Leasing allows you to explore more your likes and preferences for a car, more than any test drive could reveal about a car.
- Your monthly payments on a lease are lower than on a new car loan
Getting a loan to pay for a new car may force some people to look for used vehicles, or settle with cars that may not be what they desire, but are within their budget. This is not something that happens as often when leasing a car. Usually (depending of course on the type of car you want to lease and your credit history), after an initial down payment, leasing a car is less expensive month to month.
- Manufacturer’s warranties last until the end of the lease term… and then you get another car with brand new warranties
You don’t have to worry about warranties running out after a few years with leased cars. Since you’re leasing a brand-new vehicle, the manufacturer’s warranties are also new. Basic warranties on a lot of makes and models extend well past the two-year lease terms. Another perk about leasing, regular maintenance, such as oil changes, is often covered by the dealership from where you leased the vehicle.
- You don’t have to dread depreciation
If you like the option of driving a new car every couple of years, but still aren’t totally sold on the lease option yet, consider the depreciation factor. By the time you pay what you owed on the car, good luck getting anything close to that number in return for it! And if you intend to sell the car before it’s paid off, you’ve really lost out on a considerable amount of money. With leasing a car, as long as you return the vehicle in good working condition, and without driving over your mileage limit, wrapping up a lease can be very easy with minimal cost to you.
- Leasing a car often requires lower initial down payment
While the cost of initial down payments varies from car to car, person to person, lease agreements usually require lower down payments than purchasing agreements. The more you pay for the initial down payment, the lower your monthly payments will be. This fact is true for both leasing and purchasing a new car.
There are of course some perfectly reasonable arguments for those who are against leasing a car, such as the mileage limits and fees for going over the limits causing problems. Or cars that are damaged in any way upon returning them can cost a pretty penny to the consumer. However, if you take care of the car and keep an eye on your mileage, these problems should be of no worry to you.
Rarely is the mileage limit an issue. Since the car is in your name for only two years, you’d have to do a lot of long distance trips to go over that limit. And it if for some reason you do surpass the mileage limit, the extra cost is calculated by charging per mile. If it’s only a couple hundred miles over, the cost is negligible.
Consider this too: if you bring in a used car for sale, the higher the mileage, the less money you can expect to get for it. So, it goes to show that excess mileage can hurt you financially regardless if you have leased or purchased.
This same thinking goes for car damages as well. If you bring back a banged-up car for resale, you will definitely be met with some drastic cuts to the sale price. Any major accidents or body work will show up in the car’s history, compromising the integrity of the car, which will hurt the resale value.
Many of the arguments against leasing a car can easily be made against buying a new car. So, the next time you hear someone explain why they think buying a new car is better, think about the scenario if it was a purchased car. Often, you will find the arguments simply do not hold up exclusively for leased cars.
If you think that leasing a car would be the right option for you, here you can learn more info about leasing.