Consider New Car Leasing If You’re Looking For A New Car
If you’re in the market for a new car, you may want to consider a new car lease as a purchase option. There are many advantages to leasing compared to buying outright. The only thing you need to be clear about in advance is that when you rent a car, you are not renting it. All considerations regarding your credit history apply in the same way as when you want to get a car loan.
Leases have many advantages and if done correctly you will find that they are the best way to go. The most common misconception is that most people think that it is more important to have a personal interest in the car, so they decide that it is better to buy it. Realistically, a purchased car is a horrible investment because after the loan has been paid off, what remains is the remaining value after depreciation and interest.
Leasing new cars, on the other hand, is a better option because you only end up paying for the part of the car that is considered used during the life of the lease. Your monthly payments will be the only amounts that are taxed and you will most likely have the option of not paying a down payment. If you consider that the full value of a car depreciates over time, by leasing instead of buying it, you will never end up owning that depreciation in the end.
Another benefit of new car leasing is the way monthly payments are calculated. As mentioned above, not only are you not paying sales tax on the lease, but because the car isn’t being financed in full, your monthly payments will be much lower than on a loan.
If you live close to work and don’t find yourself traveling long distances, the mileage aspect of a new car lease could also be a benefit to you. All car leases will have mileage restrictions. This is one of the ways a car dealer will be able to put value on the car for the length of time it is leased to them. The total mileage allowed will usually be enough for most people and in some cases can even be negotiated. However, keep in mind that exceeding the specified mileage will cost you additional money at the end of the term.
Finally, what offers the greatest benefit of a lease program is that you can trade the car in for a new model after two or three years. With car ownership, you will find yourself making payments for several years only to be saddled with a car that is a fraction of the value and quite possibly the beginning of mechanical problems as well. That can be easily avoided with a new car lease.