There was a time when many Americans went every second or third year to trade their vehicle in on a newer model. For most of us, those days are long gone. If they weren’t a thing of the past when the bottom dropped out of the economy back in ’08, they surely are now! However, the good news is that there is a much more affordable way to get that newer, state-of-the-art vehicle every few years. Believe it or not, there are multiple benefits of leasing when it comes time for a new car.
1) Leasing Actually Costs Less
When you buy a new vehicle, not only will you need a sizeable down payment but for the largest part of the first couple of years you will be paying interest on your loan. You actually don’t start paying down the principle until about midway through the loan term and by then, with the average five-year loan you are ready for a new model!
With an auto lease contract you are only paying down the depreciation of the vehicle. Therefore, monthly payments are much cheaper and at the end of the term, which is typically three years (remember that golden number when you are ready for a new car?) you can just turn it in.
Now you can drive off the lot with a new leased vehicle. Since most people never actually pay off their auto loans and simply turn them in when ready for a new car, you are paying half the amount (or less!) than the average monthly car loan payment and you still have a new car every third year.
2) Always Under Warranty
When you buy a new vehicle, the bumper-to-bumper warranty that comes with most vehicles is about a 3 year term. After that, manufacturers offer various limited warranties specific to their brand. With a leased vehicle that you are trading in every third year, you will always have a car that is under warranty for all major parts and specified repairs.
There is, however, one thing to be aware of and that is that routine maintenance you will still be responsible for. Oil changes and tune-ups at recommended intervals, new tires as needed and things of that nature will be your responsibility just as if you were buying or owned the car. Even so, isn’t it good to know that you will always be driving a car that is under warranty for major problems that are covered?
3) Always the Latest Technology
Again, as mentioned above, by trading in your leased vehicle every third year, you will always have the latest technology and in terms of safety and extra features, that’s an absolute necessity. Whether it’s all the little ‘extras’ you are looking for or simply want to be assured you will always be driving the most fuel-efficient vehicle available in that size range. Any new technology that is not yet developed is always an added plus!
So, with these 3 benefits alone, you can see that in many cases it’s just a better decision all the way around. Looking for a new car this year? Check out the benefits of leasing. You may be pleasantly surprised.