If you’re considering getting a new car, you’ve probably already started to explore some of your options.
Not only is there an endless number of different makes and models of vehicle to choose from, you also have different options for making that new car yours.
For many people, taking advantage of lease car deals is the ideal way to get behind the wheel of a new vehicle. Here are 5 reasons to lease a car instead of financing:
Affordable Monthly Payments
When you opt to lease, the monthly lease payment for a new vehicle is lower than a monthly financing payment.
Since you’re essentially renting a car rather than buying it, you only pay the difference in the residual value and the purchase price of the vehicle.
On average, a lease payment is about 30-60% lower than a monthly financing payment or personal contract purchase.
And that doesn’t just mean more money in your pocket every month. It means you may be able to choose a more luxurious vehicle as well!
Drive New Cars
Who doesn’t love that feeling of being behind the wheel of a brand new vehicle? Of course, as fun as a new car can be, upgrading your car every few years isn’t really affordable for most people.
Even when you consider a trade-in credit, the depreciation of your existing vehicle will mean shelling out more money each time you want to upgrade.
Leasing, on the other hand, lets you simply hand back your car at the end of the lease term and then upgrade to a new one.
In fact, some dealers will even let you upgrade to a new car during your existing lease for a much lower price.
Lower Initial Deposit
One of the biggest initial restrictions when buying a new vehicle is the down payment. And if you’re financing, the larger of a down payment you can make, the better.
Not only does financing often require a larger down payment initially, but paying more upfront helps minimize interest paid and lower the monthly payments.
On the other hand, lease down payments are sometimes as low as a simple one-month payment held as a deposit.
And while you do usually still have the option of making a large down payment to reduce your monthly payments, the amount you actually save over the duration of the lease is so minimal that you’re likely better off keeping your money in your pocket.
Quick and Easy Process
If you’ve ever had to apply for a loan before, you likely already know how much time and effort is involved.
From providing proof of income and tax returns to ensuring your credit score is where it needs to be, qualifying for a car loan can be a stressful process.
Leasing, however, tends to be a much easier process with more relaxed requirements for qualification. Often, a simple credit check is all that’s needed to qualify.
Peace of Mind
Finally, one of the top reasons to lease a car is the peace of mind that comes from knowing your car has the latest safety features and is under warranty for the duration of your lease.
Rather than having to worry about unexpected repairs or maintenance, you’re able to drive confidently knowing that you’re protected if something goes wrong.
While there are a lot of benefits to leasing a vehicle, it’s important to remember that there are some disadvantages as well.
Make sure to read the lease contract carefully to ensure that you’re not going over the allocated mileage for your lease, and are upholding any other terms in the contract.
And keep in mind that if you drive a lot in the course of a year, leasing may not be the best option. However, for people that drive an average amount looking for a new car for a lower monthly price, leasing a vehicle may be ideal.