11 Apr Pros of Leasing Your Next Car
The decision to buy or lease when shopping for a new car is an important one. However, there are some advantages to leasing a car that a person should understand in order to make an informed decision. Perhaps the biggest benefit of leasing a car is that the end of the lease period, the leased car is returned and exchanged for another new car. For those who want to drive a new car every few years, leasing may be the best option.
In terms of cost, there are also good reasons to consider leasing. Leasing is less expensive than buying in terms of upfront costs. This is due to a lease not actually being a purchase, meaning that you will not have to pay as much sales tax as when leasing a vehicle. In many cases, no down payment is required when leasing a vehicle. If a down payment is required when leasing a vehicle, it will generally be less than the down payment required to make a purchase.
The monthly payment amount to lease a vehicle is also less than the monthly payment amount needed when purchasing the same vehicle. This means that those who lease cars will have a lower payment amount each month. However, due to the lower payment amount, a person can also choose to lease a more expensive car than they could afford to purchase.
Another significant advantage of leasing is convenience. Lease terms are known upfront and there is typically little negotiation on the terms of a lease, unlike when purchasing a car. At the end of the lease period, the car is simply returned and the transaction completed according to the language of the lease contract. With a car that was purchased, the owner must either sell or trade-in the car on a newer model. For those who do not like to haggle and spend a lot of time negotiating, leasing a car is the better choice.