The Financial Benefits of Leasing a Car

Leasing a car is becoming more and more popular among consumers. When you lease a car, you are agreeing to rent the car for a certain period of time. You agree on a monthly payment for a certain period of time and then at the end of the term you have two options. You can either return the car or purchase it. While leasing a car is a great way to get a new vehicle without buying it, you also will get several financial benefits as well. Here are a few ways that leasing can help your financial situation.

Avoid Depreciation

One thing that many car buyers are disgusted with is how fast their car depreciates once they buy it. As soon as you drive a new car off of the lot, it depreciates drastically. By the time you drive your car long enough to pay it off, it is usually worth less than half of what you paid for it. Spending all of that money on a depreciating asset does not make much sense.

With a lease, you can avoid this all together. You get to drive the car while it is still new and then just turn it back over to the dealer after you are done. You really don't care what it is worth when you are done because you can just get another new car when you're done. Depreciation makes buying a car much less attractive.

Lower Payment

When you lease a car, you will have a much lower monthly payment. In some cases it could be a few hundred per month less, depending on what type of car you get. This will allow you to save money each and every month over the course of your lease. A common lease term is three years. Therefore, if the payment is $100 less, you will save $3600 over the life of the lease. If you are planning on getting new cars frequently, you will be better off to lease instead of buying.

Maintenance Costs

When you buy a car, there is a good chance that you will have to worry about maintenance frequently. When something is wrong with the car and it falls outside of the warranty, you're on your own. If you are leasing a car and something goes wrong with the car, it doesn't matter to you. You just take it to the dealership and have them fix it. It's technically their car and you are just driving it. This means that you are not responsible for any of the costs for repairs.

If you have ever dealt with car repairs before, you know exactly how costly they can be. You could easily spend several thousand dollars on certain repairs. This means that when you lease a car, you can completely avoid all of the costs associated with this. You will still have to change the oil and do regular maintenance in some cases, but other than that, you don't have to worry about it.

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