Are you currently thinking about leasing a car? It may not always be the cheapest way to go, but there are some obvious benefits to leasing your next ride.
Cheap Monthly Payment
If you don’t have the option to buy a car for cash, and if you don’t have much disposable cash flow each month, it might make more sense for you to lease your next car. No matter what the vehicle is, the lease payments will almost always be less expensive than the purchase option. Plus, if you truly are tight on cash, there are lease options that can be as little as $149/month. Even if you’re only making minimum wage, you still might be able to lease a brand new car.
No Huge Debts
If you went out to the dealership right now and put $5,000 down on a brand new $30,000 vehicle, you’d still owe them (or the bank) $25,000 over the course of the loan. You are basically locked into that $25,000 until you sell the car and pay off the note, or until you pay it in full over the course of 5 or 6 years. With a lease, you don’t have a huge financial obligation looming over your head for half a decade. You merely have to make your monthly payments and after the lease terms, you just return the vehicle. You’ll never have that $25,000 that you have to pay off like you would have if you bought it.
With a car lease or fleet hire, there’s added flexibility (in comparison with a brand new car purchase). Let’s say once again that you bought the new car and are making payments on your loan. What if you decide that this vehicle is no longer for you after 2 years? You still owe $21,000, but your vehicle is only worth $19,500. If you sell if for what it’s worth, you’ll have to take extra money out of your account (if you have it) to pay off the note! If that’s not possible, then guess what, you’re stuck with the car. With a lease, you can decide early on if you’d like to lease the car for one or two years. Then, once the short lease term is up, you have the option to do whatever you want.
Let’s imagine once again that your cash situation is bleak. Maybe you’ve only got a couple thousand dollars to put toward a vehicle. You’d like to pay cash for a car, but what can you get for $2,000? Most likely, it would be rusted out, more than 10 years old, and have high miles. If you depend on your car to get to work, it might be better to get yourself into a newer ride. With a brand new lease, you most likely won’t ever have to worry about breaking down. The only money you’ll spend will be on the maintenance.
– Cheaper per month
– Brand new car without a big loan
– Flexibility to get into something else in 1 or 2 years (when the lease is up)
– Little chance of breaking down