In 2020, more than 4.3 million Americans leased a car. Keeping in mind how modern cars can cost thousands of dollars, it isn’t surprising why leasing is becoming a much-preferred alternative.
If you’re confused about whether to lease or to buy a car, then the answer depends on your bank account and your personal preferences. Those who only want a car for their daily commute and do not have any fancy expectations should opt for buying. However, if you want to own a luxury car, then leasing would be the better choice.
With that said, both options have their own pros and cons that we will discuss in this article right after walking you through the basics of leasing. So let’s dive straight into it!
How Does a Car Lease Work?
In simpler words, leasing a car is like a long-term rental. You keep the car in return for paying a fixed amount every month. Once your lease contract ends, you can either return the car or renew the contract. People often mix car leasing with car financing – but both of them are quite different. In car financing, you also pay a fixed monthly amount that is referred to as an instalment. The difference is that you’re paying the instalments to gain ownership of the car while in the case of leasing you are only paying to drive.
How to Lease a Car?
Similar to any other car services, to lease a car, you first have to find the right dealer. This can be a bit tricky and you may have to spend some of your time searching. Each car lease service may quote you different rates, we suggest browsing through online reviews to save your time and money.
Fortunately, you can find companies on our website like Sixt Car Rental and Flexible Autos reviews. There are also, dozens of different companies on U.S-Reviews to find a trustworthy dealer for when you're sure you want to be leasing a car.
Now let’s move on to discussing the core advantages of leasing and buying a car.
3 Advantages of Buying a Car
No Monthly Payments
There’s no better feeling than buying your own car. You don’t have to worry about making any monthly payments and it’s more or less a one-time investment. While every now and then you’d have to spend some money on maintenance, that’s an entirely different case. And you have to keep a leased car maintained as well. If you don’t want to worry about paying a fixed monthly amount then buying a car is certainly the better choice.
Although buying a car can be expensive, keep in mind that it becomes a long-term asset. Unless it gets totalled in an accident, then that’s an exception. While you wouldn’t get the full amount back if you buy a new car, you may be able to sell a used car for profit. As long as you know what you’re buying and get the advice of a professional mechanic, a used car will always get you back at least 70-90% of the cash paid during purchase.
No Mileage Limits
The biggest problem with a leased car is that there is a certain monthly mileage limit that you need to adhere to. If you want to drive more than that then you would have to pay an extra fee. However, this isn’t the case if you buy your own car. There are no restrictions on how much you drive it, and no one is there to stop you.
3 Advantages of Leasing a Car
Lighter on the Pocket
Leasing a car is lighter on the pocket and the monthly payments are also quite low. While the exact figure mainly depends on the car dealer you’re leasing from, for most people it can be quite flexible given that you keep the car maintained.
Driving the Latest Models
Has it always been your dream to drive a luxury car but cannot afford to buy one? Well, leasing would help you turn that dream into a reality.Not everyone can pay a lump-sum amount to buy a car worth thousands of dollars, but what you can do is to lease it instead. So instead, you can find companies who provide a car lease of the latest models on our website. Look around to find one that fits your needs!
No Long-Term Commitments
In comparison to when you buy a car, there are no long-term commitments with leasing. Sooner or later your contract will end and you can conveniently return the car to its owner. This can be great if you are tired of driving the same car and are looking for a change. Moreover, leasing can also help you decide if a certain car is worth investing your money on.
Final Verdict – To Lease or To Buy?
Ultimately, to lease or to buy depends on personal preference and your financial limitations. If you always had a knack for driving luxury cars, then leasing is the better and more feasible option. However, if you want a permanent ride without any hassle of monthly payments, then buying is the safe choice.