Getting a new car can be an expensive proposition, with the price of a new vehicle being too expensive for many shoppers. Fortunately, leasing a car can help consumers afford a new vehicle with an affordable monthly payment lower than if they had purchased it.
Buyers have to decide whether they will lease or buy a car to get behind a new set of wheels. There are many benefits to owning a car that you may miss out on if you sign a lease instead. But leasing may be more affordable, and you can replace your car every few years, but you do not own any of the vehicles you are paying for.
So, is it better to lease or buy a car? Keep reading to learn more.
Leasing is a popular way for people to get into a new car without the long-term contracts that come with buying a vehicle. When you take out a lease, you are essentially borrowing the vehicle and repaying the difference between the car’s value and the expected value at the end of the lease term.
Although it seems like the pros and cons of leasing a car make it less appealing that buying a vehicle, it may be a good option for certain buyers.
Some of the most notable car lease benefits include the more affordable monthly rates than most auto loans. Your monthly payments for a lease are usually lower because you are not paying back any principal.
Here are some of the most notable advantages leasing vs buying a car:
- You are typically driving a car before it has been driven long enough to need major repair or maintenance.
- Vehicles that are available for lease are newer and usually still covered by the manufacturer’s warranty which can include complimentary oil changes or other maintenance.
- You may be able to afford and drive vehicle makes and models that may be out of your price range if you were buying vs leasing a car.
- When you are done with a car, you don’t have to worry about fluctuating value or reselling the vehicle.