Most of us grew up hearing that buying a new car was a better financial decision than leasing. While that may have been true at the time, in recent years, manufacturers have started to incentivize leasing in order to make it an attractive (and fiscally viable) option.
At Cartelligent, we help thousands of clients each year decide on the right vehicle and payment options for their financial needs. A little over half of our clients choose to lease and there are a number of reasons why this can be a great decision. (For more information on leasing see The Beginner’s Guide to Leasing.)
7. Leasing offers a short-term commitment to try something new
For those who are tempted to try a new vehicle, but aren’t ready to commit to driving it for more than a few years, leasing can be a great way to try driving a plug-in hybrid, hauling the kids around in a minivan, or just trying out a new brand.
6. Leases can be expensed for businesses
Leasing provides far greater tax deductions than buying a new vehicle. If you own your own business, it can be worth a call to your accountant to see how leasing may offset some of your costs.
5. Leases can offer better incentives
Manufacturers often provide lease-only incentives, high residual values, and/or low money factors to make leasing an attractive option.
4. Leasing lets you keep up with the latest safety features and technology
Each new model year brings new safety features like blind-spot monitoring and convenience features like Apple CarPlay and Android Auto. Leasing allows you consistent access to this technology since you’re always driving a newer model.
3. Leased vehicles can be returned hassle free
One advantage of leasing is vehicle can be returned to any dealership at lease end (or to your local Cartelligent office if you’re leasing a new car with us). This saves you the time, hassle and uncertainty of trying to sell the vehicle on your own.
2. Leased cars are (almost) always under warranty
Typically leases run for 36 months which is shorter than most manufacturers’ warranties. A number of brands will also offer complimentary maintenance for the first three years (or give you the option to purchase pre-paid maintenance). This means you never have to worry about unexpected repair expenses when leasing.
1. Leasing offers significantly lower payments
Lease payments tend to be significantly lower than finance payments because you are only paying for the value of the car for the time period you are using it. This can be more palatable from a cash flow perspective.
As a general rule, leasing can be a good financial option if you plan to replace the vehicle within a few years. If you would prefer to keep the vehicle for a significant number of years, financing is usually a better choice.
Need more personal guidance? The car-buying experts at Cartelligent can walk you through your financial options and help you make an educated decision. Your initial consultation is always free and there is never any obligation to use our services. For more information, give us a call at 888-427-4270 or get started today.