Leasing a car is one of those hotly debated topics. Is it worth it? Does it really save money? While some argue that buying a car outright or on finance is the only way to go, the reality is that leasing a car is the best available option for a lot of people, and it certainly has its perks. Let’s take a look at why you might want or need to lease, the benefits of doing so, and how to get the best deal.
When leasing is great
The obvious attraction to leasing over buying is that you need less money to do so. When money is tight, the perks of leasing become very tempting. If you only need a car for a shorter period of time like for a temporary commitment or living situation, leasing becomes the straight up better option as you won’t have to worry about depreciation when it comes to selling, or deal with any of the sales hassle. Additionally those who are self employed can get tax breaks which make a lease more than worth it.
When you choose to lease, you also choose other benefits offered by car leasing companies such as full warranty, free delivery, breakdown recovery and road tax, so you have far less to worry about. Perhaps the biggest benefit of all is that as you switch in a new car every few years, you have access to the latest models and drive each vehicle during the best years of its life, equating to fewer problems while it’s yours. Your only additional cost will be car insurance (there are ways to keep this low) and basic maintenance, though you can add a maintenance package to take care of that, too.
What to consider for a good deal
Since a lease is simply paying for depreciation of the car in the time you hold it, a longer lease will cost more in total, but work out less each month. Consider how long you need it, but remember there are costly fees for terminating a lease early, so think about your future circumstances. By picking a car with a high resale value, the car’s depreciation will be less resulting in a sweeter deal for you.
Know the value of the car you want so that you can use the facts to your advantage when contacting dealers. Negotiate a sale price before disclosing that you want to lease. You can use services like nerdwallet to calculate your best deal once you’ve gathered the information. The same with getting a good mortgage deal, arranging a larger initial payment can be a huge help.
A mileage limit will also be factored into your contract, so knowing how many miles you need a year is vital for negotiating the best deal, not paying for more than you need, or risking going over your limit and paying even bigger penalties. Make sure to set this with other terms such as the length of lease before committing. You’ll also want to establish what is considered as “normal wear” so you don’t get overcharged for general damages on return of the vehicle.
Conclusion
In the right circumstances, leasing a car can get you a better deal and save you money. For some, it better suits their lifestyle, for others setting their own terms is just what they need for their current situation. Through leasing you can briefly experience the high life of a car way above your usual budget, or you can use it as bridge to save money before actually buying a car. Just be aware that if you continually lease cars, you will always be paying for a depreciating asset that you will never own. It does make sense to eventually buy a car, if only on finance, unless saving money on your car isn’t a priority.
