|
Car leasing can be a very attractive alternative to buying for many people, although not for everyone, as we'll discuss later. You must decide about the importance and relative priority of these benefits to you.
So, what are the potential benefits of leasing when compared to conventional new-car purchase loans?
Potential Benefits of Car Leasing
These include:
- Lower Monthly Payments when Leasing your Car
- More Car, More Often
- Leasing gives fewer Maintenance Headaches
- Lower Upfront Cash Outlay for Leased Cars
- No Used-Car Hassles with a Leased Car
Lower Monthly Payments when Leasing your Car
Because you only pay for the portion of the car or truck that you actually use, your monthly payments are 30%-60% lower than for a purchase loan of the same term.
More Car, More Often
Since your monthly payments are lower, you get more car for the same money and drive a brand new vehicle every two to four years, depending on the term length of your leases.
Leasing gives fewer Maintenance Headaches
Most people like to lease for a term that coincides with the length, in months, of the manufacturer's warranty coverage so that if something goes wrong with their car, it's always covered.
Lower Upfront Cash Outlay for Leased Cars
Most leases require little down payment, which makes getting into a new car more affordable and frees up your cash for other things. However, you can choose to make a down payment to lower your monthly payment amount.
No Used-Car Hassles with a Leased Car
With leasing, the headaches of selling a used car are eliminated. When your lease ends, you simply turn it back to the leasing company and walk away, unless you decide to buy it.
There is not really a lot to think about, leasing looks a good option.
So is it really better to lease your car? - our next page discusses when it is better to lease and when to buy a car.
|
