Many peopleÂ are not certain about buying or leasing a new car. What usually arises is the question as to whether it makes sense to lease a car or to make an outright purchase. It has been proven that there are various advantages to leasing a car instead of buying one. All leasing means is the rental of a vehicle for a period not exceeding four years. Some of the advantages derived from leasing are car are as follows.
Affordable Monthly Expenses
Buying a new car is beyond the reach of most of us. Leasing is more affordable because once you make a one-time deposit, all you are left to do is make monthly payment for the remainder of your contract.
Moreover, your costs are lowered further since you are not fully responsible for the car, and the value of the car is taken into consideration upon returning it.
Brand New Cars
Leasing allows you to retain the car only for the agreed period. It could range from as little as two to four years. You can then decide to buy the car by making a one-off payment of the remaining value, or return the car and get another vehicle on a new lease. You are not tied down to the same old vehicle when the period of the lease expires.
In order for you to secure a new car, it requires that a major deposit is made with the dealer. On the other hand, placing a deposit for a leased vehicle requires an amount that does not exceed the equivalent of six months in monthly payments. This enables you to decide on how much you want to pay on a monthly basis.
Depreciation on a new car begins the moment you drive it out of the showroom. The loss in value through depreciation is as high as thirty-five percent in the first year. In the next three years, it can lose a furtherÂ fifty percent of its value. In this case, you will get less than half the value of your car which is a major loss on your investment.
With a leased car, you will not absorb the loss on depreciation. The leasing company will incur the loss. As long as you stay within the mileage agreed upon and continue with your monthly payments you will have nothing to worry about.
Leasing ensures that brand new cars are affordable to organizations and individuals. Car leasing becomes the best option if you want to be in more control of your budget by paying on a monthly basis while driving a brand new car every so often. You can also opt to buy the leased vehicle if it suits your needs having proved that it is what you have been looking for. It gives you a chance to try out the car before committing yourself to making an outright purchase. You will have enough first-hand information about the vehicle to make your decision.