You rely on your car to get you where you need to go. But that doesn’t mean you won’t get tired of the way your car looks and handles. If you do, you’re not alone.
In fact, the average driver keeps their car for just six years.
With such a short period of ownership, buying a new car isn’t always a great option. It puts you in debt and can take a toll on your finances.
Leasing a car is a great way to get a new set of wheels without the hassle of buying a new vehicle. Here are a few great benefits of leasing a car rather than buying one outright.
1. It Costs Less Upfront
When you buy a car outright, you’ll need to either pay the full asking price or find a way to finance the purchase. If you take out a loan, either with the dealership or a private lender, you’ll need to come up with a down payment to secure the loan.
The amount of that down payment will vary based on the value of the car you’re trying to buy. However, you can expect to spend about 20 percent of the car’s purchase price on a down payment. If you can’t, you may not qualify for the loan in the first place.
At best, this means you’ll have to spend a large chunk of your personal savings on the down payment.
When you lease a car, you may not have to make a down payment at all. Even if you do, the amount you’ll have to put down will be far less than 20 percent of the car’s value. That means you’ll have more money to use for other purposes.
2. You’ll Have Lower Monthly Payments
One of the biggest benefits of leasing a car rather than buying one is your monthly payment amount. When you finance the full price of the car, your payments will be much higher. This is because you’re borrowing more money from the lender and have to pay that amount back in full by the end of the loan term.
When you lease a car, you’re not financing the full price of the car. Instead, you’re paying a fee to use the car for a set period of time. This means your monthly payments will be much lower over the course of the lease.
If you’re looking to get into a new car on a tight budget, leasing will make it much easier. You’ll be able to get a nicer car without having to pay a premium for the features you want.
3. Maintenance Is Easier to Take Care Of
When you buy a car outright, you’re responsible for all of the routine maintenance and repairs it receives. You have to pay those costs out of pocket unless the warranty covers the repairs.
So, how does leasing a car work as far as maintenance is concerned? In many cases, the dealership that you lease the car from covers the cost of the maintenance and repairs.
This means all you have to do is make an appointment, get the car repaired, and get back on the road. You won’t have to worry about expensive repair bills unless the damage is a result of your driving habits.
4. You Won’t Have to Worry About Depreciation
Cars depreciate the minute you drive them off the lot. When you buy a car, you bear the full amount of that depreciation on your own.
That means when you decide to sell the car, even if you sell it a week after you bought it, you won’t be able to get the full amount that you paid for the car.
When you lease a car, you don’t have to deal with the depreciation at all. The dealership does. All you have to do is drive the car and enjoy using it while it’s new.
Once the lease is up, you’re done and you won’t have to worry about trying to sell the car for enough money to help pay for a replacement.
5. Upgrading Is Easy
If you’re the type of person that enjoys driving the newest car on the road, you know that upgrading a car after buying it is hard. You have to find a dealership that will offer you the highest trade-in value or find a private buyer to pay you for your old car.
Then, you have to look for a newer model and negotiate a sale price. The process can take weeks if you’re not careful.
When you lease a car, you won’t have to worry about a long upgrade process. All you have to do is turn the car in at the end of your lease. Then, you can lease a newer, nicer model and repeat the process. There’s no worrying about selling the car or negotiating a fair trade-in value.
6. It Won’t Hurt Your Credit
Anytime you apply for a loan, it has the potential to hurt your credit score. The more debt you take out, the lower your score can drop.
When you lease a car, you’ll still make monthly payments just like you would if you financed the car. However, those payments won’t hurt your credit score.
This is because a lease doesn’t show up on your credit report the same way that a loan will. Keep in mind that any late lease payments can still hurt your credit score, so you’ll want to take care to make your payments on time each month.
See the Benefits of Leasing a Car for Yourself
If you’re in the market for a new set of wheels, buying isn’t your only option. Instead, you can lease the car of your dreams for a set period of time.
Once you do, you’ll be able to experience the many benefits of leasing a car for yourself.
Just remember that you’ll still want to do your research and choose a car that you’ll enjoy driving for several years. Check out our latest posts for more tips to help you find the best car for your driving habits.