Why should you lease a car over buying it?
This question will sit in the forefront of every car buyers mind when the time to get a new car comes. There are plenty of resources out there breaking down the why’s and why not’s and we want to direct you to some of them that answer the questions you may have on why a lease can be a benefit over buying a car.
An amazing benefit in driving off the lot with a lease is you can be in a car that is brand new that you may never have seen yourself in because you didn’t think it was possible. Well, it IS possible!
A great thing about leasing in the current market is if you want out early, you are NOT stuck. As long as you are not dropping your car off at the dealership to wash your hands clean of the lease, you will not be penalized (each dealer has different stipluations so make sure to check with them) and there are options for a buyer to move to their next vehicle.
A warranty is also a shining benefit to leasing. Many dealers and manufacturers offer a 2 year (and occassionally three year) bumper to bumper warranty. That covers any major repair and oil changes. Sorry, this doesn’t mean your windshield, your brakes, your tires, any scratch or dent, or your wipers are covered. Those you will have to take care of on your own.
A lease on a vehicle can help in the resale value of the vehicle. All cars lose value, but the lease helps secure the value better than a purchase.
Another benefit is a lower payment as well as a lower down payment, if any down payment at all.
Did you know you can use a lease as a business tax ride off?
There is also built in gap coverage. What does this mean? If you get in an accident and your car is totalled, you are covered!! (that alone is a huge benefit)
Other items to take into consideration in leasing a vehicle are your payment terms- they are generally shorter than a purchase (36-48 months), whether your credit will allow for a lease, and can you maintain the condition of the car?
Here are some great links to articles that break down the good and bad of a lease, click on the bold heading to read more,
1. Leasing is a bad deal. 2. It’s nearly impossible to negotiate a good lease. 3. Only businesses get a tax break. 4. You will have to pay hefty fees when you turn in the car. 5. If you want out early, you’re stuck
“It is ultimately up to the smart car buyer to weigh the pros and cons, determine what their needs are, and what best suits their lifestyle.”
“On a personal note: I feel that if you lease a car, you are already under the realization that you do not technically own the vehicle and so for that reason you will end up taking better care of the car during the term of your leasing agreement because it is not yours, where as on a purchase you may leave that door ding or small scratch on the fender to be fixed later.”
“If you want to drive a new car as often as possible and don’t want to think about having a car that’s not under warranty, then leasing is definitely convenient.”
We understand lease contracts can be confusing, you want to make sure you are asking questions during your buying process. Make sure you know your terms, you know what is covered, and you are comfortable with it before putting the pen to the paper. If the questions are not asked, then the answers are not given and allows for issues to pop up after the contracts have been signed. In the end, it is about educating yourself as a buyer whether you chose a lease or a purchase.