Who doesn’t want a brand new car? For many, they’re preferable to used cars. The reality, though, is that not everyone can afford them. New vehicles are so expensive! It’s one of the reasons that most people opt to lease them. Leasing allows you to drive a new car with just a little down and a low monthly payment.
As convenient as that already sounds, this is still not ideal for some people. For instance, those who do not have a stable source of income should think twice about taking on such a weighty financial obligation. If you are unsure whether or not leasing is a good option for you, read on as Lewis Motor Sales shares some of the pros of leasing and one important consideration to remember:
The Charm of a Brand New Car
Shiny, new cars do have a lot of advantages. For one, you won’t have to worry about any underlying problem or any replaced parts. That’s not to mention the flawless paint job, the smell of fresh leather interiors, and the latest tech innovations that most modern cars come with.
Additionally, most dealerships offer up to three years of free maintenance, which means you have three years of not having to worry about the upkeep of your vehicle.
New Car Lease 101
Think of car leasing as renting a vehicle long-term. You’ll have a title document, but that will reflect that the leasing company owns the vehicle. Still, you’ll be responsible for paying the insurance and the taxes for the car – that’s on top of the monthly payment you’ll have to make to the leasing company.
How much you’ll be paying depends on the depreciation of the vehicle while you’re using it. In a nutshell, it’s like paying for your use. That means if the car is worth 70% of its value when brand new, the payment for your lease will amount to the 30% left.
You would also have to pay the interest on the money the lease company used to purchase the car. It’s because you’re technically borrowing money from the lending company to buy the vehicle, and when your lease is up, you’ll have to give the car back to the lease company. Yes, at the end of the contract, you’re basically left with no car! That’s one of the biggest drawbacks of leasing.
Pros of Leasing
No Down Payment
This is probably the biggest perk of choosing to lease. Instead of saving up for money down, you need to raise the first month’s worth of payment and any taxes or fees that come with buying a new car.
Low Monthly Payment
As mentioned, you’re only paying for 30% to 40% of the vehicle’s value. That’s certainly less than the 100% you would pay for if you choose to buy the car yourself. And while you can extend a loan so your monthly payments will be just as low as the lease repayments, that would also mean additional interest.
You Can Change Cars More Easily
When you own a car, and you want a new one, you’d have to go through the trouble of trading it in or selling it yourself so you can raise money for a new one. You won’t have that problem with a lease as you simply need to return the current one you’re leasing and get a new one.
Advantage of Buying Over Leasing
Despite the pros mentioned above, there are benefits that you can only get when you buy. Of course, the most important one is that you’ll own your car and you get to keep it for as long as you wish to. While you do have to pay the loan, the vehicle will be yours in the end. That’s certainly more attractive than the thought of paying every month and then not even having a car at the end of the deal.
Leasing does come with some pros, but you should also consider its drawbacks. For some, the thought of paying for something that will not even be yours, in the end, is quite challenging to swallow.
You have another option besides leasing and buying a new car. How about getting financing for a used car? If you check with reputable dealerships that offer used cars for sale as well as financing options, you might find the deal that works best for you. This option provides the ease of payment that a lease offers but still ensures that the car will be 100% yours.
Lewis Motor Sales not only carries some of the best used cars for sale in Brentwood, NH, but we also offer the most attractive finance offers from reputable lenders. Get pre-approved today!