So, what’s the verdict? Have you decided whether leasing a car can work for you? Do you think the disadvantages are too big to ignore and the benefits are too few?
If you’re still on the fence about leasing a car, don’t worry. Most consumers need time to think about financial commitments, and car leasing is definitely that. Like a car loan, you will be spending the next year or so paying a monthly fee to drive your car. Plus, you also need to deal with the nitty-gritty of insurance and taxes.
The important thing is to make an informed choice. Some friends or family members can help you decide, if they’ve tried leasing at some point. You need referrals and testimonials to know which leasing companies are better than others. Ask around to find out which dealers are trustworthy and which deals seem legit.
As with anything that has to do with money, there are shady individuals who will try to take advantage of your business.
Just don’t forget the basics and you’ll be fine when selecting a leasing company and a dealer. Also, remember that you will need to find a good insurance company. Insurance or the price thereof is frequently the reason why people are hesitant about leasing vehicles.
One other factor for the hesitation is the price of a new car. If you’re not particularly concerned about driving the best models, you can easily find an older car for less than the price you’d pay for a newer car. Remember that vehicular value depreciates yearly and your car will definitely cost less after a few years. An older model is also attractive to others who are more concerned about price than features, so you can resell an old model faster because the price is lower.
You can even turn a profit if you take care of your car and if you choose a car that will always be in demand (a.k.a. family car).
But then, if driving luxury cars is your thing, go ahead and lease one. Some people go by the principle of personal value, which simply means their choices in life reflect their philosophy and worth as people. Meaning, if they drive the latest model cars, they will be giving out the message that they can afford such a car and are therefore considered successful.
Dressing for success, or getting a car that reeks of success, can be great for the career-minded individuals who have a status to maintain. By leasing, you can change cars every four years and drive the best ones.
The thing is, car leasing is not a good long-term strategy if your goal si to save a lot of money in ten years. There’s no equity in the leased car that you can use to purchase other stuff, like a house or another car. You can’t hand the car down to your children because you’ll have to turn it over to the leasing company after your lease is up (unless you buy it). These are some of the consequences of leasing. In the end, it all boils down to priority.
Leasing is for you if you’re a really careful driver. Most drivers of leased cars understand the consequences of driving roughly. Just because the car isn’t “yours”, don’t drive it like it doesn’t belong to you. In fact, you should be more careful because you’re technically borrowing the car from someone who will charge you a lot if you don’t take good care of your car.
If you’re careful with your car and understand the pros and cons of leasing, you’ll be fine. Expect many fees when you start your lease and when you end it.
Not everyone is able to lease a car, especially because the companies you will be dealing with are likely to run background checks. Credit problems in the past will nearly always surface when you’re negotiating the price of your lease. Your credit score is one way to prove your credibility to the dealer and the leasing company.
Thus, if you are able to lease a car because you’re one of the people who are credit-worthy enough to take on a lease, just try it for a few years.
Hopefully, we helped you make an educated decision about leasing a car. In the end, leasing is also a financial strategy you can use for the short term. This strategy is particularly helpful if you’ve always wanted to drive a particular car model.
Just remember the differences between renting and leasing (and buying brand new) and you’ll be fine.
