When To Lease
Having to decide between leasing and buying your vehicle is a difficult task. This article will take you through all the situations in which leasing will be the better option. We’ll focus on when to buy a vehicle in our next article.
The basics of a lease is simply making monthly payments to ‘borrow’ a vehicle from a dealership. Part of the lease agreement will be that you will be responsible for wear and tear and cosmetic degradation during the time you were using it.
Even if you know you want to own a vehicle, it’s still a smart choice to lease the car first. No matter how much you read about a vehicle, you may not actually like it after a few months or a years of constant use.
Everybody has a different experience with their vehicles. Some cars do better in a city setting and others do better with highway driving. You may think you want a more spacious vehicle but end up not needing it after all. So by leasing, you reduce the risk of owning a car that you don’t actually like.
Easier On The Wally
But this is not the main reason to lease. Leasing is great when you don’t want to drop a bunch of money up front. Considering how quickly vehicles lose value, purchasing a one outright is not a great idea. Leasing is a great way to save money and drive a nice car at the same time.
However, make sure you know how many miles on average you drive per year. A big part of the lease agreement is the mileage restrictions. If you drive more than the average commuter a lease agreement might not be right for you. Especially if you are prone to road trips or have an unusually long commute to and from work.
Leases are designed to fit within the parameters of the average driver. So if you fall into this category you don’t have much to worry about. Simply take the car to the dealer for consistent maintenance and drive safe. If you folly the basics you won’t have to deal with any penalties at the end of the lease agreement.
Maintenance is another reason why leasing a car is great. You never know when some kind of unexpected problem will arise with your vehicle. Having a lease guarantees you will ever have to deal with the high cost of repairs. You are just borrowing the car from the dealer, you are not responsible for any repairs that is may need.
Lemons are a big problem in the car buying industry. A lemon is a car that has malfunctions that are unpredictable and unusual. This is usually the result of some kind of oversight in the design process. There are many great cars out there that are considered to be lemons. The last thing you want is to purchase a vehicle that requires an exorbitant amount of repair costs.
Luxury For Less
Another unique per to leasing a car is the ability to have a high quality vehicle without spending a ton of money. Let’s say you work in an industry where you are seen in your vehicle consistently. It will help your image if you are seen driving a nice car, regardless of whether it’s a lease or not.
It may seem superficial but people, especially potential clients and business partners, will judge you based on these kinds of things. Having a great car that you like will be noticed by others, and you don’t even have to take the large risk of buying the vehicle outright.
The ability to eventually buy the vehicle is a great reason to lease as well. Let’s say you lease a car our of your price range, but after 2-3 years your career improves and you’re making more money. Now you can get the car that you love and there isn’t as much financial risk as it was before. And since you have already leased it, going through with the buyout will ultimately be cheaper overall.
The benefit of buying comes when you know you love the vehicle you are about to purchase. For those who enjoy working and upgrading their vehicle, and intend to keep it in the family, buying is the better choice.
At the end of the day you need to weigh the pros and cons of leasing for yourself. In short, here are the circumstances in which you should lease your car:
- You want to avoid spending a lump sum of cash
- You want to save money on maintenance costs
- You want to experience the vehicle before buying
- You want the option to lease another car in 2-3 years
- You have an average commute to and from work
- You want a more expensive vehicle for business purposes
- You may be in a better position to buy in the future
Deciding between leasing and purchasing can be difficult. Feel free to reach out to us anytime for a personal consultation. Visit us at carvoy.com