If you're considering car leasing, make sure you've done your research beforehand so you can be sure that leasing is the right option for you. Here's a guide to some benefits of leasing a car to help you on your way.
Drive away in a cool car
First off and one of the best advantages of car leasing is because monthly payments are lower, you may be able to drive a higher priced cooler car. If you can only afford so much money per month on monthly payments, the money will enable you to afford a cool car for leasing than you could if you were buying a new car. Basically you maybe able to drive a car you didn't think you could afford.
Limited savings? Don't worry!
Often you don’t need a down payment at all for leasing a car and if you do, it’s usually very small, especially compared to the down payment you’d need to put down on a new car. Since there are less up-front costs, leasing a car is an attractive option for many people who don’t have enough savings to spend on a down payment for a new car.
Lower monthly payments
When you’re leasing a car, your monthly payments will be lower than if you were to buy a new one. If you can’t quite afford the monthly payments of a new car, leasing can allow you to drive a newer car with less monthly costs. You don’t have to take out a loan for it, so you won’t have to pay interest.
When you lease a car it’s usually a late-model car with very few miles on it. Because it’s so new, you’re less likely to have any major problems with it during the time of your lease. If you do have any problems, it will likely still be covered under the manufacturer’s warranty.
There are however a few disadvantages to car leasing which you should weigh up before deciding to lease a car...
Ownership - the car is never yours
And since those monthly payments go on forever, and you’re only borrowing the car, you’ll never have ownership over it. It will never be your car, so you can never recoup any of the cost by selling it or trading it in for a future car. You just give it back to the dealership, and start the process again.
Monthly payments never stop
A disadvantage to leasing is that you’ll never stop paying monthly payments. Over time, if you only lease cars, you will end up spending more on monthly payments for leasing than you would have spent to buy a new car. If buying a new car is a financial option now, it may be a better way to spend your money.