Buying and using a brand new car is definitely an exciting and overwhelming experience, but how many of us carry the same excitement using the same car for years? Let’s be honest no one. It’s an undeniable fact that carrying the same fervor for years is not possible. Within a very short time your brand new car becomes old and you will soon lose interest in it.
For the present generation, however, the only formula to get noticed is to continuously upgrade and update. May it be their hairstyle, cell phone, accessory or computer – they want the newest and best. For such people, leasing a car is an attractive alternative to buying a car. It is not only an ideal way to use the latest models, but also gives them an opportunity to drive luxury cars, which are often reserved for the rich class.
Below are some of the benefits of leasing a car over purchasing a new one.
Drive home a brand new car
Unlike in buying a new car, there is no need to compromise on your favorite model because of its high price. This way you can drive home a new car that might be out of your price range in case of purchase. Car leasing is becoming increasingly popular in many developed nations like US and UK. Auto dealers are offering better deals to attract more customers. Hence, we can lease from a wide range of latest models of various popular brands.
Low monthly payments
Purchasing a new car through finance leaves the consumer with huge monthly payments (installments), which he/she is supposed to pay until the tenure of the loan completes. Though leasing a car still needs some monthly payments, they are comparatively low. On an average, your lease payments will be 35% 55% less compared to repayments on a new car loan.
Less or no maintenance
Another interesting thing about leased cars is that you can avoid the hassles of ownership as well maintenance costs. Almost all the leased cars are either new or nearly new vehicles, which are perfectly conditioned prior to the delivery. Hence, apart from routine maintenance checks, serious repairs are seldom required. In general, any major issues and expensive repairs crop up as the car ages. As your car lease is going to expire within 2-3 years max, nothing to worry about those repair costs.
Depreciation and resale
A car is always a depreciating asset which continuously loses its value from the moment you drive it home. Brand new and luxury cars often depreciate up to 60% in the first few years after purchase. Similarly, the resale value of those cars depends on their current condition, availability in the market and many other factors. On an average, they lose anywhere from 35% to 70% of their original value.
If you are taking a car on lease, you need not bother about the depreciating value of the car since the lessor (person who leases the vehicle) takes the risk of any unexpected depreciation in the value of the vehicle. Furthermore, since you will be returning the car to the dealer once the lease period completes, you need not worry about the selling hassles or resale value of the car.
You can buy it, if you like it
Many people get attached to the things they use for a significant period of time. Also, there are people who feel that buying something brought them luck. For those people, car lease offers the flexibility to own the same car, at any point of lease or after the lease, by paying the remaining balance which is called as ‘residual value’. So, if you want to own your leased car, approach your dealer, negotiate the price and bring the car forever.
Though leasing is a new concept, it became popular as it favors people who do not want to use the same old car for long. However, it is better to know about the leasing process and approach a reliable dealer to get better leasing experience.