There are many reasons that a car lease may be an attractive alternative to purchasing a car. While a lease is not for everybody, it certainly has some advantages over buying, especially in the short term. If you don't plan on putting a large amount of miles per year on your car and you can take decent care of it, a lease could be a much better value for you. Here are some benefits of a car lease.
Less Money Up Front
Most leases do not require a down payment, and if they do, it's usually much lower than the down payment for a purchased vehicle. You can pocket the saved cash and use it for other things.
Lower Monthly Payments
Monthly payments for a leased vehicle tend to be lower than monthly payments for a purchased one. Since you are only paying for the car for the time you use it, you'll be saving money. You can make your monthly lease payments even lower if you decide to trade in your old vehicle or make a down payment.
Ease of Getting a New Ride
When your lease term is up, you do not have to worry about selling or trading in your used vehicle to get a new car. You can simply go out and lease another vehicle. Without the hassle of selling or trading in your old car, you can enjoy a simple process that allows you to drive a new vehicle every few years.
Fewer Maintenance Headaches
The most worry-free way to lease a car is to lease it for a term that falls within the manufacturer's warranty. So, for example, if you lease a car that has a 5 year manufacturer's warranty for 4 years, you should not have to pay for any costly and troublesome repairs. When your lease is consistent with the manufacturer's warranty, you'll never have to worry about paying a mechanic for maintenance.
Less Tax Cost
When you lease a car, you only pay a tax on the portion of the value of the vehicle that you use during your lease. When you buy a car, you must pay the tax for the full purchase price. With cars costing tens of thousands of dollars, the tax money you save with a lease can be significant. Also, if you use the car for business purposes, you may be able to deduct tax costs to save even more money.
If you are looking into getting a new car, be sure to consider the benefits of leasing. For a constant, lower monthly fee, you'll be able to enjoy new cars every few years, and you'll be free of hassles such as selling or trading in your car and paying for repairs. As long as you don't plan on putting lots of miles on the car and pounding it with extensive wear and tear, you should look into leasing a car and see if it is right for you.
Related Questions and Answers
On Average, are Car Lease Costs Higher than Buying a Used Car?
Car lease costs tend to be lower in the short term, but the total cost of ownership is higher over the long term. Car lease payments are lower than the payments for a used or new vehicle. When leasing a car, you are only paying for the value of the car you will be using during the lease period, which is usually 24 to 48 months. In the end, if you decide to purchase the vehicle and pay the residual value on the lease, the cost will, in most cases be more expensive than purchasing the car outright. When broken down over the lifetime of a vehicle, buying a car outright is cheaper due to the years of service it provides after the loan has been paid off.
Can You do a Car Lease Exchange with the Same Amount of Time on the Lease?
Doing a car lease exchange is not an easy process. You need to find a person with the type of car and lease you want and hope they want to exchange with you. Companies such as Swapalease make the process a little easier, but luck can play a big part when doing a lease exchange. This site lists various leases that are available for take-over or swapping. You can list your lease or just look for a new one. There will be fees involved when exchanging leases, as well as a fair amount of paperwork. While it can be time-consuming and a bit expensive, swapping leases can be rewarding for all parties involved.
Can You do a Car Lease Termination without being Charged Extra?
Car lease termination almost never comes without fees. in fact, the fees and penalties can be quite substantial. A car lease is a legally binding document and the leasing company will make it very difficult for you to terminate the lease early. In the majority of cases, they will want you to buy out the remaining lease payments or buy the car outright. It is possible to find someone to take over your lease payment and transfer the lease into their name. Swapalease is a site that lets you list your lease for potential buyers to view. If you agree to lease or buy a new car, a dealership may buy out your lease in order to put you into a new car.