Three reasons to lease a car instead of buying one

When it comes time to get a new car the biggest decision that you have to make is whether to lease or to buy. In the vast majority of cases it makes more sense to lease than it does to buy. Following are the three main reasons that it makes more sense to lease your car.

  1. You Pay Less: This is probably the most important reason to lease a car instead of buying one, it simply costs less. There are actually two ways that the cost is lower, the first is the down payment. When you purchase a car you normally have to pay at least part of the cost of the car up front, this amount can usually be significant. This is not normally the case when you lease a car. In some cases a down payment will be required but it is normally less than you would pay if you were buying, many dealers nowadays don’t even require a down payment for a lease.The other way that you save money by leasing is that the monthly payment is almost always less than you would have to pay if you were to buy. This is because you will be returning the car at the end of the lease period so that the dealer can sell it as a used car. The result is that most dealers of have car lease specials that are significantly better deals than buying would be.
  2. New Car More Often: Most of the time when you lease a car it is for a period of two to three years at which point you can trade the car in and get a new one. When you buy on the other hand you normally finance for a period of five years which tends to increase the amount of time that it takes for you to get a new car. It is not easy to trade in your car when you still owe money on it so if you buy you will likely find that you are stuck with the same car for at least five years.
  3. You Can Still Buy the Car: While there are clear advantages to leasing a car a lot of people still find that they have a hard time making a decision about whether or not the should do it. The good news when you lease is that you really don’t have to make a decision since most lease agreements give you the option of buying the car at the end. This not only means that you can get the advantages of leasing and still own the car when the lease expires but it also means that you get to drive the car for a couple of years before you have to make a decision on buying it, clearly this will give you a better chance to assess the car than a test drive.