Benefits of Leasing over Purchasing
There is no better time to look over the family finances than the start of a new year. If this is on your list then one this you should consider is the option to lease a new vehicle versus buying.
Of the many advantages to leasing over purchasing a new vehicle a lower monthly payment is at the top of the list. The car’s monthly payments are cheaper because you’re only paying for the future depreciation of that vehicle, and not the total amount. For example, if you were to purchase a vehicle that retails for $40,000 you would have to finance the full $40,000. However, with a lease you are only paying for the portion of the vehicle that you use. The residual value is based on the car’s predicted future value, and is what the car is expected to be worth at the end of the lease. The residual value is subtracted from the purchase price and what’s leftover is what you make payments on.
Another advantage is that leasing instead of buying will allow some driver to getting a nicer and more luxurious vehicle than they would otherwise get into. So rather than settling for just any vehicle you can get the Lexus you have always wanted. Since you’re only paying for a portion of the car when you lease, payments are typically less than when you have a car loan. If you only have a small down payment saved up, leasing may also be better for you. Many leases require anywhere from $0 to several thousand dollars up front, though the down payment is negotiable.Finally, if you enjoy having newest and best in new-car technology and safety features, leasing could be right for you. There is almost always an option to buy at the end of the lease if you find that you just cannot let the vehicle go. But most shoppers turn in the vehicle and lease another new car once the lease term has ended. This will allow you to get a new vehicle every few years, and be up to date with what advance there are in the auto industry.