Deciding whether you want to lease or buy a car isn’t always easy. Most car dealerships offer both options, but approximately 80 percent of consumers choose to finance a new car or pay cash for their purchase. This way, when they finish making payments, the car belongs to them.
The fact is that leasing new cars is similar to renting apartments. You don’t own the car when the lease is complete, but that doesn’t make leasing a bad deal. There are numerous advantages to having a leased vehicle.
Consider these things:
- Do you prefer new cars or used cars? Leasing is a good option for people who want a new ride every three years or so. Not only does leasing save you the hassle of selling your old car, but it also gives you lower monthly payments.
- Auto dealerships don’t require as much money upfront for a leased vehicle. Also, your monthly payments are lower. This is because you’re only paying off the depreciation of the car, not the entire car. Leasing a vehicle means you’ll have a car on hand every month, and you don’t have to come up with a large down payment.
- Leasing gives you more flexibility. When you go to a car dealership and lease a new car, that car is typically yours to drive for up to three years. However, you don’t have to lease a new car when the old lease expires. You have the option to purchase the car you leased.
So, if you decide you love the car and want to keep it, or leasing just isn’t for you, then you can purchase the car. A lot of people take advantage of the lower monthly payments and then purchase the car when the lease has expired.