At one point in time, most car owners have found themselves questioning their choices about car ownership, whether to lease or buy the model. Both buying and leasing have their benefits, with the end result being you will be able to drive your car to serve your current car needs best. Various car dealerships offer potential motorists with both options.
Keep in mind that the choice of leasing or buying has several financial implications. However, this cannot be the only basis on which you can make your decision. There are various considerations you need to look at before pulling the trigger on this deal. This article is focused on the benefits of leasing a car over the choice of buying to help you make an informed decision.
Benefits Of Leasing A Car
Lower Monthly Payments
Compared to buying, leasing generally costs way lower. Most dealerships like Urbana Ohio Car Dealerships offer little to no down payment to potential car owners. In most cases, you don’t even have to pay for the upfront sales tax. When leasing, all you have to pay for are the monthly installments for the given period you are leasing the vehicle. These installments are rather lower compared to those you will be paying when you opt to buy the car through monthly installments.
However, you should keep in mind that when returning the leased vehicle, you may have to pay a few extra charges such as exceeding allowable mileage limits, returning the car with unrepaired damages, or even terminating your lease earlier than agreed.
Never being upside-down
Most car lease agreements range between one to four years. The monthly installments included in your agreement correlates directly to the amount of depreciation expected during the lease period. Keep in mind that different models and makes of vehicles depreciate differently, which means there is no universal calculator for depreciation. That being the case, you are subject to pay for the depreciation of the vehicle occurring during the period of your lease, this way, you can never be on the upside-down. Unfortunately, this cannot be said for car owners who opt to buy the car through installments; they tend to find themselves owing more than what the car is worth due to depreciation.
Reduced Repair Expense
This is one of the most attractive benefits of leasing over buying. In case you are covered by a manufacturer’s warranty during the period of your lease agreement. Then, you don’t have to worry about shouldering a huge, unexpected bill when you visit the garage for repairs. However, it still stands out; you are still expected to cater to the regular maintenance and upkeep of the car. You may also have to pay for the minimum amount of auto insurance, depending on the laws and regulations of the state or region in which you reside.
You Get to Drive a New Car More Often
Leasing has been one of the most viable choices for car owners who enjoy changing their vehicles frequently. Going through one of the Urbana Ohio car dealerships, you can find some of the latest models that offer advanced and modern features that are definitely attractive to many car enthusiasts. In addition, by leasing a vehicle, it becomes easier for you to exchange your vehicle for the latest model without causing a huge dent in your finances.
When you decide to buy a car, you probably have to use the car for a significant period before deciding to trade-in for a new model. However, the flexible nature of leases allows you to exchange cars as frequently as you want. This way, you can enjoy up-to-date technology, safety features, and comfort.
You Don’t Have To Sell Your Vehicle
Depending on your lease agreement, when your term expires, you are expected to return the vehicle, or you opt to refresh your lease but for a different vehicle. This way, you don’t have to go through the hassle of finding a buyer for your old vehicle, especially when you are looking to buy a new car. With a lease, you also don’t have to worry about getting a fair value when you trade in your old model for a new one. In some lease agreements, you have the option of buying a vehicle at the end of your agreement for the price you had agreed on previously.
No Loan Approval Required
Car loans are considered one of the most expensive options, especially when your credit score is below excellent. Aside from being expensive, securing the loan in the first place can prove to be an uphill task. Most car owners who opt for car loans to fund their car usually find themselves paying outrageous interests. However, leasing companies are usually more flexible compared to other financiers. They don’t necessarily put in place strict criteria for potential car owners to get their vehicle. This is mainly because they can easily repossess the car when you default on your installments or if you violate the terms of your lease agreement.
Having made your choice to lease a vehicle rather than buy. You need to take careful steps to ensure you get the best out of the lease terms. Consider some of these steps when getting your next lease agreement.
- Weigh your preference- this can be narrowed down to functionality. What do you intend to use the car for?
- Compare cars- having decided on the use; you need to look at the various models that fit your category. Focus on aspects such as ratings, mileage, safety features, and other features you may find appealing.
- Compare your options- once you are done with the tests, it’s time to weigh your options. This way, you can narrow your list, with your focus being the cost. Once done, go back to the dealership and discuss the money aspect of the process. The installments depend on your agreement with the dealer. Make sure you negotiate for a reduced price.
- Be consistent- after signing the lease agreement, ensure you make your payments on time to avoid any penalties. Also, remember to stick within the agreed terms.