IF you are one of the people who currently needs a new ride, then you must know that there are more ways to get yourself a new car. More and more people choose to forget about the car loan applications and choose to lease the car. So should you buy or lease your next car?
Actually, leasing represents a third of all the vehicle sales that are currently on the market, according to a study made by Forbes. But let’s see some aspects you should take into account before deciding for buying or leasing the car!
Not so much money
We know it, it’s hard to gather up enough money to put down. And when buying a car, you usually need to give over a minimum of 10% of the price in order to get the best interest rate. As such, the 10% can really be hard to save up.
Meanwhile, leasing a car requires only a down payment of usually three monthly rentals in advance – sometimes less – which is why this option has become so popular.
The market model of letting people pay in multiple payments rather than just one big one isn’t new and it can be seen in every industry. When it comes to leasing a car, it offers the same advantages.
Low monthly payments
If you go for leasing, you have to know that your monthly payments are 1/3 lower than if you decide to get a 5-year loan for the same car. Moreover, most leases will last for 2-4 years. When you do the math, that’s just a better deal overall that will not only help you save money but also “get the ball and chain off” a lot quicker.
Even if the payments are accessible, no one likes to feel like they’re tied to something and leases help you go through that a lot less than car loans and even upfront cash full payments when you consider the implications it can have on your lifestyle long term.
You prefer the latest cars and features
Naturally, everybody wants to get the best car they can with the available funds. The best part about leasing is the fact that it allows you to enjoy a better car than you could have gotten if you handed down the money. If you’re the type of the person that’s always rushing to get the latest releases in smartphones, TV or appliances, then you should consider leasing, since you can enjoy it for a couple of years before getting a new one.
You don’t like customising
When leasing a car, you are not allowed to make any significant modifications to it. You have to keep it exactly as it is, even if you’d really love to place a new spoiler on it or a new steering wheel. If you know you love to customise things, then you should better own the car right from the start. This is really a personal matter however.
Some people are perfectly fine with waiting out the lease period in which they can add modifications. Others simply cannot, and customization is part of the reason why they want that car in the first place.
Minimise repair bills
Throughout most the leasing period, the car is under warranty, given that most new cars have a three-year warranty as standard. This means that if there is any problem with it that is covered under warranty, you won’t have to pay the repair bills from your own pocket. Meanwhile, if you decide to buy it, you will have to take care of every small or big cost that arises outside of the warranty.
Of course, this depends on the purpose of the car and how much are you planning on using it. If it’s just for work, you can set off the lease costs against taxes, for example.