Is it better to lease or buy a new car? Some people will probably say that purchasing a car is the ideal option, and from a ownership point of view, that might be true, provided you are ready to commit to higher monthly payments, pay off your financier, and keep the vehicle for the next few years. However, leasing is the wiser investment and a relatively inexpensive option compared to the monthly loan payments, as, in addition to the lower monthly costs for leasing, you don’t have to worry about getting stuck with the vehicle. Here are some of the top benefits of leasing as compared to paying the full price upfront or securing an auto loan.
Pay Less for Depreciation
Leasing a vehicle with the option of returning it at the end of the lease period avoids the burden of depreciation, because, when leasing through Canadian companies like AUTO ONE Group the monthly payments made are meant to offset the depreciation over the lease period, unlike the option of buying where you incur depreciation costs on the whole vehicle cost. Individuals who buy are bound to bear more on depreciation as compared to those who lease their vehicles.
Repair and Servicing Benefits
It can be incredibly frustrating when your newly acquired vehicle has a mechanical problem immediately after the expiry of the manufacturer’s warranty. If you don’t have a comprehensive insurance cover, you will be forced to take care of the repair costs. However, for a leased vehicle, you never have to worry about repairs and servicing because the car remains under warranty for the entire contract period, meaning that all repairs and servicing needs of the vehicle will be covered. This can result in significant savings on vehicle maintenance as compared to buying.
Lower Monthly Payments
Auto loans can take a toll on you financially, especially since the monthly payments are usually high, and you need to have a stable source of income to pay for the vehicle continually – failure to do so can result in possession of the vehicle by your financier based on the terms of the contract. On the other hand, a car lease payment is significantly lower than the monthly auto loan payments. You pay less because, when leasing, you are only financing depreciation that occurs during the lease period plus a few fees, as opposed to the total value of the vehicle and associated costs.
Car leasing is a wise investment if you want to drive a new vehicle without going through the hassle of reselling or trading in the old one. With a car lease, you just need to hand over the keys after the expiry of the lease agreement and get a new car on another lease, or simply walk away. You can change to a new vehicle after every three years or so without going through the stress of reselling.
Before leasing a vehicle, take the time to find a reputable company with experienced dealers who have an in-depth knowledge of vehicles and the car leasing industry, and inspect your contract thoroughly to ensure total adherence to the terms stated therein and avoid disagreements with the leasing firm. You don’t have to be saddled with the burden of a depreciating investment, and in return you get a new lease on life!