Leasing versus buying a new car can be a difficult decision. While leasing might not make sense for every driver, there are a few reasons you might consider leasing over buying.
Lower Monthly Payments
You will have to make monthly payments whether you buy or lease your new car. However, you will find that the monthly payments of a lease are often lower than what you would pay for an auto loan. When paying an auto loan, the first few years of payments go toward your interest. Leases do not charge as much interest, meaning your payments are going toward the car itself. You also have to factor in the down payment requirements. You will usually have to put down more money on a new car loan than a lease.
Included Maintenance
A single mechanical problem with your vehicle can cost you thousands of dollars in repairs. In the meantime, you are still required to make your monthly payments, even if you don’t have a car to drive. With a lease, your maintenance is generally included. Additionally, because leases are newer cars, they are usually still covered under warranty. Driving a car with a warranty also means you get to drive something that you can rely on.
Latest Technology
Perhaps one of the biggest advantages of leasing a car is that you get a brand new car every few years. When you buy a car, you might have to drive it longer in order to pay down the loan. With a lease, you can trade in your car for a newer one as soon as your lease is up. You can opt for a newer model of your current car or you can change to a completely different model. This means you have access to the latest technology, safety features, and comfort amenities.
Avoid the Hassle of Selling
Selling your car can be a timely process. You either have to trade it into a dealership or go through the work of listing it, showing it, and then negotiating a fair price. Depending on the market, it is also possible that you will not get the full value of the car. In fact, you could end up paying off the difference if you still have an auto loan outstanding. With a lease, you can skip over the inconveniences of selling. When your lease is up, you simply drop it off at the dealership and then choose your next lease.
Tax Deductions
If you use your vehicle for work, then you might qualify for tax deductions with a lease. When you buy a car, you are not eligible to deduct the interest. However, when you lease a vehicle for work purposes, then you can deduct things like interest and car depreciation.
Leasing a new car has many advantages over buying. Leasing can be more affordable, reliable, and offer you the perks of the latest technologies. Stop by Bob Ruwart Motors today to check our current inventory of 2019 vehicles.
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