Lower Up Front Expense - One of the biggest advantages of a lease is that it does not usually require a substantial down payment.
Smaller Monthly Payment - If the finance period is the same, your monthly payments will be lower when leasing (vs. financing) because your payments will be based on the vehicle's estimated depreciation. (You are contracting to use a portion of the car's value, rather than buying the entire car.)
A New Car More Often - Your taste and preference may change, and a short-term lease makes it easy to drive a new car more frequently. Additionally, you may have needs for a larger or smaller car in a few years, and a lease makes it easy to plan for such changes.
Guaranteed Future Value - You don't have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term. But if it's worth more, you can buy it and keep it or resell it. A lease gives you an option.
Pride of Ownership - Ownership can instill a sense of pride. It can also build equity. Payment by payment, an owner's equity may increase.
No Restrictions on Mileage - This is important to consider if you drive more than 12,000 to 15,000 miles per year.
Make Changes to Car's Appearance - You can alter the interior or exterior to suit your taste (though your choices may affect the resale value.)
Financing your next vehicle might be a better option if:
- You always drive over 15,000 miles a year
- You like to customize your car by tinting windows, adding pinstripes, sound system, etc
- You usually get emotionally attached to your car
- You love to see those payments dwindle to nothing
- You like to do your own repair work
- Your current car is more than 4 years old
Leasing your next vehicle might be a better option if:
- You typically drive less than 12,000 miles a year
- You've got to have (real) new car smell
- You like the security of driving a car under warrant.
- You usually choose a car that you can't afford
- You're willing to trade ownership for low, monthly payments
- Your company reimburses you for car expenses
Still unsure? Give us a call or contact us to get more information.