In this day and age, a car is no longer a luxury but a necessity. You have two options either to buy or lease. It’s a big decision especially if money is tight in your budget already.
There are certain considerations to look out for when it comes to a car this include your personal style and lifestyle. In addition, you need to figure out your goals, budget and personal preferences.
Buying vs leasing a car
The financial implications alone determine whether you should lease or buy a car. Both of this come with their fair share of benefits, but you need to do is determine which one’s matter. Learn more to understand the difference and benefits of leasing from Intelligent Car Leasing.
Benefits of leasing vs buying
1. Lower monthly payments
Typically, leasing a car has lower monthly premiums than buying, if all variables are the same. With leasing, you are paying for the depreciation of the car during the time you will be using it as opposed to paying for the car. If you need access to a little more cash than you have right now, leasing would be your best option.
2. Fewer car repair expenses
You don’t have to worry about repairs if you are under warranty with the manufacturer because it’s covered. During a lease all you need is regular servicing, car maintenance and auto insurance. When you buy a car, it’s your obligation to keep up with regular servicing to ensure the car is in good shape for resell.
3. Get to drive new cars
When your lease expires then you get a new car. Most lease las between 36 and 48 months which means you can get a new car every 3 or 4 years. But when you buy a new car then you have to wait until you finish the loan repayment to exchange it with a new car.
4. The available savings for a down payment
Lease agreements tend to have low down payments. If you are lucky, your dealer will even waiver the down payment if you will pay less for the sales tax on a lease. Because of the low down payment, your budget will not be affected so much, and you will remain with cash balance you would have parted with had you bought the car.
5. Leasing is a close ended contract
When you lease a car depending on when the lease contractexpires you simply return the vehicle or extend the lease with another one. When you lease you have the option to buy off the car at a preset price, in return you get a high valued car worth much less.
Before leasing or buying do your homework and compare cars, understand your preference and be firm as you negotiate for lower monthly rates. Comfort is an important aspect of a car; get one that fits perfectly into your lifestyle.
Leasing a car does not have to be a bad thing or a money-sucking pit. It can be convenient to know you will have a vehicle for a couple of years as you make the necessary financial adjustments to owning a car.