When you are considering a new car, some of the things to consider are the make, the model, and how you plan to pay for it. Most dealerships offer financing options and can help you figure out the best payment options for you. If you have the opportunity to lease a Lexus or similar vehicle instead of buying the car, the benefits to leasing may be a better fit for you.
What is a Lease?
The term lease may not be apparent for everyone, but a lease is an option that allows you to pay for a new car for a shorter term and have the opportunity to turn the car back in at the end of the contract term. As long as the vehicle remains under the mileage cap and in good condition, the benefits of turning the car in after 2 or 3 years can be excellent.
New Car More Often
One of the most apparent benefits of leasing is that you get a new car every couple of years. The argument that you never own the car is valid for some people, but in many situations, people buy a car, pay for it for five to seven years, then trade it in and start again. Because the term is longer, people that buy a new car wait longer for that new vehicle. The duration of the lease is typically only two to three years, and then you need to turn the car in or buy out the lease.
Depreciation and Your Trade In
If you are buying a car with traditional financing, the depreciation that happens right away is going to lower the value of the vehicle at trade-in time. While a lease car can depreciate, the car is newer, has less mileage, and less drop in value when the time comes to get a new car. Also, the leased car is not traded in on your new car; it is sent back at the end of the term, much the way a rental car would be.
When you consider leasing a new car, you have more options for the vehicle you can choose. The lease payments are very often lower than on a vehicle that you are buying because of the interest you pay on a loan. Since the overall cost of leasing is lower, you can choose a nicer car with better options for nearly the same payment as buying a new car. Make sure to discuss the ins and outs of the lease with the dealer before going that way, so you understand the terms, but when it is all said and done, leasing may be a much better option for people that do not mind making payments and never really owning the car outright.Share
19 March 2019
Hi there, my name is Pete. Welcome to my website. When I was in college, I purchased my first car from a private seller. The car immediately broke down on my way home from the seller's location. I was stuck with fixing the vehicle before I could even start driving it. From then on, whenever I needed to buy a new or used car, I went straight to the auto dealer lot. Auto dealers make sure the vehicles sold on their lots are in great shape and will last for miles before needing any repairs. I will use this site to explore the things to look for in a good auto dealer lot. I hope you will come back often to learn about this important subject.