Leasing a Car: When is it Better than Buying?

If you’re in the market for a vehicle, deciding between buying and the financial alternative of leasing is not always easy. There are some benefits to car leasing that merit looking into before making your decision.

Access to Higher Quality Vehicles for Less

Without going into serious debt, leasing should place within your grasp better, more expensive vehicles than your pocketbook could normally handle.

Minimal Repair Costs

In most cases, leasing puts you under the dealership’s warranty, which means that you’re not fully responsible for all repairs and maintenance, like you would be if you bought and owned the vehicle.

Smaller Down Payment

Your down payment on the vehicle is usually significantly lower when you’re leasing rather than buying, so in terms of fronting the cash, this is an appealing option. This should also keep you from being what’s called upside down in the loan, which means you owe more on the car than its worth.

Lower Monthly Payments

Generally, the monthly car payments will be more manageable when you’re leasing instead of attempting to buy, because you’re not paying as much principal. Maybe you have one of those minimum wage jobs that struggles to make ends meet the way you need it to; leasing a vehicle rather than buying might just help.

Frequent Vehicle Variation

If you’re someone who is normally interested in a new vehicle every couple of years or so, then you may find leasing is for you. Leasing is a great option if you want to switch out vehicles and have something different more often than if you were buying. It’s pretty easy: when you’re finished with the vehicle, it’s a simple drop-off at the dealership.

 

Owning a vehicle is appealing, but it’s true that car leasing holds some benefits of its own. With lower payments and less hassle at trade-in, it may be that leasing will be better for you and your circumstances, so don’t dismiss it.

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