Is Leasing a Car better than Buying?

If you decide on getting behind the wheels, buying a new car is not the only answer. Leasing a car for a certain period is also an option which many individuals are exploring nowadays.

So, let us understand the difference between buying a new car vs. leasing the same car. With leasing, you can get a new car every few years, use it and hand over the keys to the dealer without any hassle. Whereas, when you buy a car, you are entitled to pay off the loan for a long time before you own the car and once you are clear of all the loans; the car is all yours. You are free to sell it or donate it as per your wish. You can also buy a car outright without taking a loan if your finances allow.

In earlier days, car leasing was only an option for customers who required luxury cars and businesses but nowadays anyone who needs a car can lease it without any hassle from the best rated leasing company Eautolease. All type of cars is available for lease from compact cars to pickup trucks, SUVs and luxury cars.

The common lease period when you rent a car is two to three years, but you can negotiate the terms as per your need.

The Benefits of Leasing a Car:

Leasing a new car mostlyhas financial advantages but there are many other benefits of leasing a carover buying a new one.

Lower Monthly Payments

When you lease a car, you need to pay a monthly rent which is always lower than the monthly loan payments that you would incur if you buy a new car instead. For the same monthly car loan amount, you will be able to afford a nicer car and have a few extra car options if you lease a car.

Latest Technology:

When you buy a car, it is not possible for you to keep changing the car every two to three years as it would become a costly affair. Nowadays, technology is changing every day. If you buy a car today, within a year a newer version of the same car is likely to be launched with advanced technology and better features. In such a fast-moving world, keeping yourself updated with the latest technology may become expensive. Leasing a car is a much better option if you are a technology enthusiast as you may easily switch your cars within two years without any hassle.

Warranty Coverage:

When you lease a new car, any expensive repairs will come under the manufacturer’s warranty and you don’t have to worry about the expenses if you are within the miles limit. Since a car is leased for a short time, you don’t need to worry about these repair costs at all.

Hassle free Trade-In

The best part of leasing a car is that after the term ends, you just have to drive the car to the dealer, settle all your fees and walk away or better, lease a newer car.

Tax Benefits:

Leasing a car can help you save you a lot of sales tax money when compared to the tax you need to pay if you buy a car. In few jurisdictions, you only need to pay tax on your monthly rent payment amount and not the value of the entire car, but this may not be applicable in a few other locations hence you need to check tax laws of your area before you decide upon anything. But, when you buy a car, inevitably you are liable to pay tax for the entire value of the car.

Smaller Down-Payment

The down-payment you need to pay while leasing a car is always lesser than the amount you need to pay if you buy a car. In fact, few leases require no down-payment at signing. You are also allowed to negotiate the down payment while leasing the car to the lowest possibleamount.

Though leasing a car makes more sense for most of the people but if you plan on using a car for long miles, you might consider buying a car instead, as there are miles restriction when you lease a car. If you cross the pre-agreed upon miles, you will have to pay an extra amount for every extra mile. Buying a car or leasing it is a personal choice you must make based on your needs as there is no one size that fits all.