These are the questions we all ask ourselves before making big financial commitments today. Purchasing or leasing a car certainly constitutes a lofty financial investment, which is why it’s common for drivers to really evaluate if leasing a car is the best option for their current situation.
In order to understand the full picture and where car leasing fits into it, we’re going to look at an overview of leasing a car and what it entails for you.
What is a Car Lease?
When you lease a car, you have temporary ownership over the vehicle. You will need to make a down payment on the lease, generally paying a portion of the lease “in advance.” From there, you will make monthly payments on the lease as part of your ownership. Typically, these payments are lower than they would be if you were paying off an auto loan after buying a car. When signing the lease, the lease will have requirements that you need to meet in order to avoid additional charges. One of these stipulation is miles, whereas another is time.
How is Car Leasing Different from Car Buying?
When you’re done with your lease, you can trade the car back in with no effort or negotiation required. As part of the lease, it’s not on you to handle the trade-in. If you bought a car, you’d have to control the trade-in and do your best to trade in the value you think you deserve for the depreciated vehicle. Secondly, a leased car is not yours forever, so you can’t make stylist or structural changes like you could with a purchased car.
What Are Car Leasing Benefits?
First off, you will have lower monthly payments – that you are already aware of – when you sign a lease. You can make sure you sign a lease that works in perfect adherence with your present and future income. You have total control and predictability over a lease, establishing the miles you want to drive, as well as the time period you want to own the vehicle.
Additionally, if you’re someone who always wants a new car, (and let’s be honest, who isn’t) then you can have access to your pick of the lot every few years. During your leasing time, most leases require you to handle the maintenance costs of the car, which means you won’t have to front major car repairs that can cost thousands of dollars.
Does It Make Financial Sense?
If you want reliability, predictability, warranty guarantee, and options in the future, then leasing a car makes perfect financial sense. Here at Signature Auto World, we want to provide you with leasing options that accommodate any budget, helping you to plan for the future while driving the car of your dreams in the present. Investing in a depreciating asset is a gamble – we want to provide you with options that are actually reliable and pre-determined today.