I have been an unwavering advocate for not leasing cars for the past few years. However, I’ve begun to relax in my years. I’m starting to look at both sides of the debate. I’ve taken the leap of faith and decided to lease a car instead of purchasing one in the past. There could be some reasons to hire a brand new vehicle, however.
A car you lease doesn’t grant you ownership of the vehicle. It’s akin to renting a car for a long time. When the lease is up, you are required to return the car. However, many car dealers will allow you to buy the car after your lease, should you choose to make the purchase.
The dangers of Leasing a Car
There are certain risks with leasing a vehicle. It is important to remember that the car isn’t yours! You must return it in good condition after your lease ends.
The dealership usually allows between 12,000 and 15,000 miles annually. I’ll be charged for each mile that exceeds 36,000 miles when I return my car at the conclusion term of the lease.
Also, I have to get the car back in good shape. Every dealership will allow for some wear and wear. But, they all have an opinion different on what is expected and fair wear and tear to cars.
These are two things I am most worried about when I’m contemplating leaving the car. I’m pretty rough with automobiles. I’ve been playing with my brand new car more than I usually would because I’m aware that it’s not mine. I’m required to turn it in within three years.
Why I Choose to lease a new car instead of purchasing one
Although leasing a car isn’t suitable for everyone, it could be a good option for some people if it’s done with the appropriate motives. Here are a few reasons I opted to lease a brand new car rather than buy it all by itself.
Tired of Headaches & Maintenance
Over the last three years, I’ve owned two beater cars I purchased with cash. They were the first vehicles I’ve ever owned the title to and had no auto loan.
However, like most older vehicles, I had to pay thousands of dollars in repair expenses during the last four years. I would guess that the cost averaged at least $100 for repairs each month.
Of course, there were months when I didn’t need any repairs. However, there were occasions when the repair bill could have wiped out my bank account had it not been due to the fully-funded emergency account.
I was so bored of having to drive my 2001 Jeep Wrangler and then 2005 Volvo to the repair shop. If a mechanic recognizes your name as soon as you enter the shop, You’ve been there too many times!
So I was looking for an upgrade to my car after being exhausted from going for repairs. A new car lease was a good option, as was purchasing one. The new car came with a great warranty and the chance that I’d never go to any mechanic other than oil adjustments and routine preventative, scheduled maintenance.
Keep changing my mind every three Years.
Another reason I like leasing cars is that I can change my decision. I’m not tied into an automobile for years at one time. Naturally, one can trade in a vehicle you buy. But that’s not a good idea.
Leases give an option for selling your vehicle after your lease or buying the car for cash. My lease lets me return my truck to the dealer at two-year and one-year marks at a predetermined price. There’s no haggling, and there are no problems when selling the vehicle back this way.
Needed Flexibility
I can lease the car. I could purchase the vehicle and trade it in for an entirely new vehicle from the dealership I am using, sell the car, pay the remaining value, or exchange it.
I like the thought that I could refinance the vehicle if I want to keep it after my contract ends. I’d simply pay in cash or take out an auto loan as I would if I were buying a used vehicle. I’ve been able to transfer a loan from one place to the next. It’s easy to do.
I’m not sure where my Job Will Take Me.
My job is a full-time job that takes me throughout the United States and occasionally overseas each two to three years. A three-year lease gives me the flexibility that I don’t have to sell a car or drag it with me if I don’t need to.
It’s a hassle to travel by car with me, but leasing allows me the option of converting the vehicle. The leasing option is beneficial if I’m unsure which country I’ll be staying in in the next few years.
Looking for a lower monthly payment
One of the most attractive selling points of leasing an automobile is the low monthly installment of the lease. After I made a down payment of $1500 and my monthly payments, they came to $250.
Many financial experts agree that purchasing a car only at a low monthly cost isn’t the most prudent option. And, that’s true. The monthly installment is just one element of purchasing or lease for a brand new car.
Things like your down payment rates of interest, loan terms, and the amount you trade in also influence your monthly cost. One of the most compelling examples I’ve heard is that the price of a car is ballooned. If you aren’t happy with the monthly installment, the dealer will squeeze the balloon in different areas (interest rate and down payment, the terms, trade-in value, etc.) to offer you the monthly payment you desire.
This could be detrimental to you, just like other aspects of the deal. You might not like the length of time you’ll have to borrow to finance the vehicle. Perhaps the interest rate will change in the process, which will make the cost of the purchase higher in the final.
A car you lease doesn’t grant you ownership of the vehicle. You have to decide between leasing and purchasing an automobile that makes sense for you.
Financial experts are known for declaring that personal finances are only what they are – personal. Every person’s decision will be unique. This applies when you lease a brand new automobile or purchase one.
What do you think? Do you enjoy leasing the latest car? Do you believe I’ve committed the equivalent of a personal finance error?
