Are you looking into buying a new car? There’s nothing more awesome than driving the “car of the year”! But before you sink all of your money into a brand new 0-mile vehicle, you may want to consider leasing a vehicle. Here are a few reasons why you should lease a car instead of buying:
1. Pay less for more
- When you buy a brand new vehicle, you pay full price–a pretty hefty price, in the case of most luxury cars. But when you lease the vehicle, you pay a much smaller amount thanks to the fact that the luxury cars have a high residual value. Once you have finished leasing the car, the dealership can sell the vehicle as “Pre-Owned”. They’ll have to knock the price down a bit, but they’ll have made up for it by leasing the car to you. This allows them to give you high-cost cars at a much more affordable price!
2. Lower monthly payments
- Leasing a vehicle costs far less per year than buying brand new. For example, Tesla’s Model S leases at $777/month for 3 years, but those buying via Tesla’s loan program pay $932/month for the same amount of time. That’s a significant difference in monthly costs, but you still drive off the lot in a brand new vehicle!
3. Lower costs to you
- When you lease a vehicle, you are driving a brand new car that is still under warranty for the duration of your lease. If there are any mechanical problems, you can bring it to the dealership and have it repaired free of charge. The average leased vehicle incurs no additional maintenance or repair costs for the duration of your lease.
4. Tax breaks
- Who doesn’t want to pay less on their yearly taxes? If you buy a brand new vehicle, you must pay the entire sales tax amount in no more than 30 days following your purchase. However, when you lease a vehicle, you only pay sales tax on your monthly lease payments. That’s far less sales tax per year, making it easier for you to afford a pricey car. As a bonus, some dealerships may even offer to cover your sales tax as an incentive to encourage you to lease the vehicle.
5. A new car
- Leasing vehicles means you always get to drive a new car, even if it’s not yours. You get that delightful “new car smell”, and you can go around town in the latest models. Talk about prestige!
6. Less hassle
- It’s hard to sell a car, but you can always lease out a difference vehicle from the dealership. If you don’t like the vehicle, it’s easy to switch your lease. Even if you have to wait for the lease to expire before changing in the vehicle, it’s still easier than trying to sell a new car.
As you can see, there are MANY good reasons to consider leasing instead of buying brand new.