Everyone has been in a situation where they need a car, but they’re not sure what their best option is.
The way a person goes about getting a car depends on several factors. These include, but are not limited to, the duration of time they need the car, the amount of money they’re willing to spend, and what type of deals they can find from nearby auto sellers.
For the person who needs a car temporarily and doesn’t want to spend a large amount of money, leasing could be the best option.
Cheap car leasing allows a person to pay a small amount of the vehicle’s price up front and make payments on a pre-determined basis.
When the term of the lease expires, the driver returns the vehicle.
For those who aren’t looking to keep a car for a long period, or those who have limited funds to spend on their auto purchase, leases provide the right balance of affordability and efficiency.
A month-to-month lease is the most common option in the industry, but every dealership may offer their own terms.
What Is a Lease? How Does It Help Buyers in the Auto Market?
When it comes to getting a car, there are a few common methods. A person can buy a vehicle outright but this can be expensive and too time-consuming for the person who needs their car quickly.
Trading it can be a good option, but it isn’t viable for those without a current auto to replace.
Leasing is a common method for transferring temporary ownership of a variety of assets. Land, buildings, and even personal property can be leased. Leases are one of the most popular options in the auto industry, providing buyers with a way to pay for their time with the car without sticking them with a longer (and more expensive) ownership duration than they want. You can even find a month to month lease available many places.
After finding a dealership that has cars for lease, a person can discuss with onsite personnel about the terms available. Even for leases, some dealerships offer flexible financing options and varying contract offers, allowing people to find something that suits their needs and their situation.
The leasing option can certainly help a person, but many want to know about the specific benefits that can be had.
Benefits of Car Leasing: Affordability and Simplicity
One of the main benefits of leasing is that the option is often available with new cars. Used car leasing is popular as well and can be more affordable in most cases. However, those who are in the market for something new can usually do better by leasing than buying – provided they only want the vehicle temporarily.
Another massive benefit of leasing is that it can often be done without requiring the individual to take out a loan and go into debt. Leases do come with down payments just like traditional purchases, but these payments are typically less than the 20 percent of the total a person would pay to buy outright.
Lease contracts sometimes come with mileage limitations, but this allows a person to know exactly how they may use the car during the time when it is considered their property. Leasing is essentially like renting, meaning drivers will also have responsibilities to adhere to.
While this option can provide a lot of benefits, there are also some potential drawbacks. These don’t mean that leasing is a bad option, they just show that every option for acquiring a vehicle has its pros and cons.
The Drawbacks of Leasing a Car
While leases help buyers avoid debt and long-term payment arrangements, their temporary nature means a person who leases a vehicle won’t be building equity in an asset they’ll be keeping.
Having to give the car back over means a person has no additional bargaining power or trade-in options if they want to buy or lease another car.
There’s also the fact that multiple leases, when used in a short time-frame, can sometimes be as expensive or even more than simply buying a car.
The person who gets a vehicle on lease may also be subject to big penalties if the terms are violated or if the vehicle is returned in damaged condition.
All this being said, those who have trouble keeping vehicles clean may want to think twice before they choose the leasing option.
Leasing is a method that many people have taken advantage of when they need a vehicle, but it doesn’t mean all leases are equal. It is a good idea to shop around for leases just like shopping around during a traditional purchase. This makes it easier to find the best deal before committing.