- Buying & Selling New & Used Cars
3 Advantages to Leasing a Car Instead of Purchasing It Outright
When getting a new or used car from a dealership, there are only two different payment terms available. Buyers can either choose to purchase the car outright or they can choose to lease it. Those who lease the car don’t own the vehicle. In a way, they are simply renting it for a certain length of time. Most leases range from three to five years.
There are many benefits involved with each option. Those who are interested in potentially leasing a vehicle should take a look at the three most popular benefits below.
The Monthly Payments Tend to Be Much Cheaper
It’s possible to own a new car without even putting down a large down payment. Those who are leasing a car will need to pay upfront costs, like the first month’s payment, an acquisition fee, a refundable security deposit, registration and taxes. The monthly payments tend to be much cheaper when leasing than when purchasing the car outright.
This is because the value of the leased car is only a percentage of the total price. This is the amount of depreciation that is expected from the vehicle. Those who are leasing a used vehicle will find that the monthly payments are even lower than leasing a new one.
Servicing Costs Are Usually Covered by the Dealership
Servicing a vehicle can be a pain in the butt. It can also be very expensive. Depending on the dealership, some dealerships will cover the servicing and maintenance costs involved with leasing the vehicle. This is as long as the wear and tear are considered to be within a normal range.
Not all dealerships offer this kind of deal. As a result, it’s always wise to speak with the car dealer ahead of time before signing the dotted lines for the lease of any car.
It’s Easy to Move Onto the Next ‘Latest’ Thing
Many car enthusiasts enjoy leasing vehicles rather than buying them because they won’t be responsible for the vehicle at the end of the lease. In fact, they’ll be able to move quickly onto the next big thing. All they have to do is go to the dealership, and see what new selections are available.
Those who are interested in purchasing the vehicle at the end of the term can do so. They will just have to pay the price difference between the actual value of the car, and the depreciated value.
Leasing a vehicle is simple and easy. It comes with almost no strings attached in the long run, which is why it is a very popular option amongst buyers.