If you are in the market for a new car you are probably looking a different ways of purchasing it. You could go and buy it outright if you have the cash, or you could finance it through a lender. But there is a third option too, leasing. What is it exactly? Leasing is unlike financing or an outright purchase in the sense you never own the car. During the time the car is in your possession it is actually owned by the leasing company. The biggest advantage to leasing that most people see with leasing is the lower payment, but there may be other reasons leasing would work better for you.
Never own the car or it’s problems
Leasing a car is like renting an apartment, you never own it’s problems, for the most part. Once you move in, if you have issues you report them to the building manager and they take care of them. Once you’re done, you return the keys and are onto the next apartment. Leasing a car is exactly the same since most leases stay with in the car’s warranty period you’ll never have to worry about any problems that arise with the vehicle. Much like keeping your apartment clean and in good standing, on a car you just have to take car of the routine maintenance like oil changes.
Consider mileage
Most leases are focused on average mileage, ranging between 10,000 to 15,000 a year. This is important because if your driving habits push you into a high mileage every year, you might want to consider purchasing over leasing. Exceeding your mileage limits on a lease can get expensive as there is usually a fee for each mile.
Damages
Much like renting an apartment where you have to put down a damage deposit, you do the same with a lease on a car. The security deposit guards against any damages you might incur during the period you lease the car. For example stone chips, door dings, etc are all things that can be charged for once you return the vehicle. Depending on how rough you are on your cars, this will be something to consider for you. Keep in mind, each manufacturer has different guidelines for what is acceptable in terms of damages and all of them will offer some sort of damage protection you can purchase.
Enjoy the drive!
