Whether you choose to buy or lease your next car depends wholly on your goals, budget, and personal preferences. Both buying and leasing cars have their benefits; the key is determining which benefits fit your unique expectations. Before you begin the search for your next personal or official car, you should take time to decide what you want to get out of it, what terms you are comfortable with, and the financial implications, letting those factors drive your decision. Vehicle leasing is the use of a motor vehicle without restrictions for a fixed period with reduced periodic payments as compared to buying a vehicle where a larger sum of money is paid to purchase the vehicle.
Benefits of Leasing a CarLower monthly payments. The cost to lease a car is typically much lower than to buy one. Little down payment is required to lease a vehicle. When you lease a car, you rent it for a fixed term, which is typically 2 to 6 years. The amount you pay each month is tied to the amount of depreciation that is expected during the lease term. You only pay for the depreciation of the car that occurs during your lease term. Reduced/ No burden of car maintenance and insurance.
You will not have to think about maintenance cost and there are fewer repair expenses. Since you are leasing the vehicle, the company who owns the vehicle takes care of all general servicing and damage repairs. Freedom to choose vehicle of your choice. If you lease a new vehicle every few years, you will always have the benefit of driving a car with the most up-to-date technology, comfort, and safety features. Variety is another reason why leasing a car is smart. Buying a new car is a commitment—and who has to say you will not fall in love with a different car several years after you make your purchase. If you would like to shop around and try a handful of models before you make a final decision, then leasing is your best option. Leasing allows you to experience living with a new car for an extended period. There is only so much you can learn from a test drive, after all. People who lease cars have the luxury of driving several different cars as if they were their own, and if having that variety sounds fun and exciting, then leasing is for you. Never having to sell a vehicle.
Once a “closed-end” lease term expires, you can simply return the vehicle or choose to initiate a new lease for a different vehicle. However, you never have to go through the hassle of selling a vehicle yourself or being concerned about getting a fair trade-in value. Alternatively, you may have the option to buy a vehicle at the end of the lease term for a pre-set price. That could be a good idea if the vehicle is worth more than the agreed upon purchase price.