For those in the market of purchasing a new car, the question of buying or leasing always comes to mind. What really is the better option here? While both choices have pros and cons, leasing is growing in popularity over the last decade and is showing no signs of slowing down.
Why are people choosing to lease cars?
If you have never leased a car before, the process can seem a bit daunting and more geared toward business owners, or people who can’t afford monthly car payments. The truth of the matter is that there are significant benefits to leasing a car, no matter what your career or income status is. So, is leasing a car better than buying? Many folks are saying yes. What appeals to most is the lower out of pocket cost when acquiring the vehicle, and not having to worry about paying the maintenance fees. With little to no down payment, no upfront sales tax, and the ability to drive a new car every couple of years is the main draw for customers who chose this route.
Leasing a car is a simple process as well; you are essentially borrowing a vehicle for a fixed amount of time. This allows users to drive the latest cars on the market, have full warranty coverage, all without paying back any principal. On average, users lease a car for 3 years, and since it’s new, it will always be during the car’s most trouble-free years.
Top 10 benefits of leasing a car:
- Leasing allows you to drive a ‘nicer’ car that you may not have been able to afford otherwise.
- Most leased cars are the latest models, and usually still covered by the manufacturer’s warranty, meaning free oil changes and scheduled maintenance.
- Lower monthly payments, and options for no down payments.
- Allows consumers to drive a new car every few years.
- Business owners may receive significant tax advantages.
- Leasing a car means no hassle of having to sell your vehicle when you wish to drive a new car.
- When a lease is up, the option to purchase the car is available, or simply return the vehicle to the dealership.
- Only pay taxes on the leased portion of the vehicle, and not on the total value.
- Some manufacturers offer special incentives for leasing a car.
- Along with driving the latest and greatest models of new cars comes the added safety and technology benefits of new vehicles.