There are many people who prefer vehicle leasing as an alternative to vehicle ownership. While some people find this idea to have little appeal upon first hearing about it, there are actually many benefits leasing can have.
Depreciation
One unfortunate fact is that vehicles depreciate as time goes on. When buying a car, you essentially acquire a losing investment. The chances of making back your purchase price when you sell it are practically zero. When you also factor in the amount you have spent on maintenance and repairs over the years, it becomes unlikely that you will even get near the amount you put into it. Leasing eliminates this hassle since you only make monthly payments as long as you use it and are not left with a balance.
Lower Payments
It generally costs a great deal less per month to lease a car than to own one. This is partially because sales tax is lower since you only pay sales tax on the amount of the monthly payments, not the cost of the whole car. This is also because when leasing a vehicle the interest you pay is lower. Further, leasing is just cheaper. An average car loan is about three years long, breaking the whole cost of the car into 36 monthly payments will almost certainly be more than simply paying to lease it.
Safety and Coverage
Every few years the automobile industry comes out with new features and developments to make cars safer and more secure. If one tried to keep up with all this by continually purchasing new vehicles it would cost a fortune. Even more costly would be to put an extended warranty on each of these new vehicles to make sure to be covered no matter what may happen. Leasing allows you to have all these benefits without the cost. Leases come standard with extended warranties, and there is no balance to pay off or vehicle to sell if you choose to switch cars every few years.
Car leasing is a viable alternative to ownership for many people. It is often less expensive than buying a car and contains many benefits.
Depreciation
One unfortunate fact is that vehicles depreciate as time goes on. When buying a car, you essentially acquire a losing investment. The chances of making back your purchase price when you sell it are practically zero. When you also factor in the amount you have spent on maintenance and repairs over the years, it becomes unlikely that you will even get near the amount you put into it. Leasing eliminates this hassle since you only make monthly payments as long as you use it and are not left with a balance.
Lower Payments
It generally costs a great deal less per month to lease a car than to own one. This is partially because sales tax is lower since you only pay sales tax on the amount of the monthly payments, not the cost of the whole car. This is also because when leasing a vehicle the interest you pay is lower. Further, leasing is just cheaper. An average car loan is about three years long, breaking the whole cost of the car into 36 monthly payments will almost certainly be more than simply paying to lease it.
Safety and Coverage
Every few years the automobile industry comes out with new features and developments to make cars safer and more secure. If one tried to keep up with all this by continually purchasing new vehicles it would cost a fortune. Even more costly would be to put an extended warranty on each of these new vehicles to make sure to be covered no matter what may happen. Leasing allows you to have all these benefits without the cost. Leases come standard with extended warranties, and there is no balance to pay off or vehicle to sell if you choose to switch cars every few years.
Car leasing is a viable alternative to ownership for many people. It is often less expensive than buying a car and contains many benefits.
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