Whether you’re a city dweller or find tranquility in the countryside, a car is crucial in getting you from point A to point B. The decision comes down to buying or leasing. And lately, more and more drivers are finding reason to lease a car. With new car prices reaching an all-time high, the big ticket price tags are deterring new buyers from investing in an inflated purchase. Instead, some are holding onto their current rides for longer, while others are taking a chance on holiday lease deals.
To make sure you’re saving the most money when considering a new ride in 2021, here are the benefits of car leasing and the most important things to look out for.
What are the benefits of leasing a car?
Leasing a car is an opportunity for drivers to essentially rent a vehicle for a set amount of years. Typically speaking, a leasing contract with a dealership will extend from two to four years for a fixed price each month. Several drivers enjoy the advantages of leasing a car. Here are the ones that top the list:
- Driving a brand new car
- Three-year warranty
- No major maintenance expenses
- No sales tax
Beyond the initial down payment, leasing a car is often less expensive than buying. You don’t have to worry about serious repairs, just your basic oil change and replacement tires. It also gives drivers a chance to test out different brands or models without making a big investment. Therefore, no need to fret over a long-term commitment or question whether you made the right choice.
Important things to know before leasing a car
For drivers who love the added benefits of leasing a car, there are still some concerns to keep in mind. First, you don’t really own it. This means you’ll have to be extra cautious while driving, parking, or taking your leased car out on the road. Maybe consider it as your last choice for your next road trip.
When it comes to leasing, all drivers must expect limitations on the mileage. Most dealerships offer 10,000 miles a year, but some have gone as low at 7,000. If you rack up the miles during your lease, there will be charges at the end that could cause considerable damage to your wallet. To prevent incurring these fees, make sure to analyze your yearly driving patterns and see if leasing a car makes sense for your lifestyle.
Unfortunately auto insurance tends to be higher when leasing a car. This is definitely something to contemplate before making a deal. The reason why insurance rates are increased is because you need higher coverage in the case of an accident. Since auto insurance is inevitable, take the time to shop around. Find an agency that will offer fair enough rates for leasing.
Cost of vehicle
There is a reason luxury cars are often leased. The price of buying these high end rides is much costlier than taking the opportunity to rent it. The truth is, most lease payments account for the depreciation of the vehicle. Therefore, it’s highly recommended that all shoppers understand how the vehicle cost can factor into the payment before walking into the dealership.
Although buying a car gives the added relief of driving as many miles as you want a year, leasing is a perfectly sensible option, especially in 2021. Monthly lease payments will cover the depreciation and taxes of driving a new car. In addition, your monthly payment will be less compared to buying new. So for drivers trying to keep monthly costs low, leasing is a smart idea.
If you’re still debating whether to lease or buy in 2021, check out our guide on the pros and cons of each option.