INTRO
A car lease is one of the most common ways that people finance their vehicles, and while it’s not necessarily a bad idea, it can be confusing and complicated to understand. In order to explain car leasing in an easy-to-understand way, we have compiled the following guide.
What is Leasing?
When leasing a car, you never own it; instead, you pay for its use over a period of time. Leasing is a great way to get behind the wheel of a new model without having to worry about selling your current car. Many consumers choose to lease cars because they’re generally more affordable than buying. With leasing, you pay for depreciation—the price difference between your initial down payment and what you would have paid if you bought outright.
How Does Car Leasing Work?
With leasing, you pay a set amount for each month and kilometer you drive—no muss, no fuss. You’re not buying your car, so you don’t need to put down a big payment upfront. Leasing also works well if you want to try out a new car before buying it or just have a temporary need for something fancy.
Advantages of Buying Over Leasing
Leasing a car is advantageous for many people. It’s easy to start, you don’t have to bother with maintenance costs or taxes. There are usually lower upfront costs when compared to buying. In most cases, leasing cars is a great idea—if it suits your needs.
Disadvantages of Buying Over Leasing
While buying a car outright is probably cheaper than leasing one, there are many disadvantages of buying over leasing. For one, you’ll most likely end up driving an older car because of depreciation. Buying a new car means you’ll be upside down in your loan for quite some time. With financing and the amount of cash needed to buy it outright.
Tips To Choose Between Buying And Leasing
There are some important differences between buying and leasing a car. To help you make an informed decision about whether to lease or buy your next car, here are some tips for each side of decision-making. When considering personal car leasing options, it’s good to remember that with personal car leasing. You aren’t actually purchasing a vehicle. Instead, when you choose personal car leasing over buying outright, what you’re doing is paying for access to use a vehicle on an as-needed basis (typically in exchange for monthly payments). The upside is that it gives you access to newer vehicles with more advanced features. Used cars typically offer at lower prices than new ones would cost.
Before You Buy or Lease?
Before you buy or lease a car, consider your lifestyle, how much money you can realistically afford to spend each month on an auto payment and how long you plan to keep your vehicle. If you have expensive taste and only want luxury vehicles, leasing probably won’t save you any money. On the other hand, if you don’t care about driving around in a Mercedes-Benz or BMW and will trade your vehicle in after three years, it might make sense to lease.
Read The Fine Print On The Contract!
Car leasing is a great way to get a new car every few years without paying for depreciation, insurance and other expenses. However, before signing a contract, read all of it carefully. Make sure you understand how much you will pay each month (and throughout your lease) and what happens when your lease is up. Read The Fine Print On The Contract!
