The cost of vehicles is climbing sufficiently that it makes more sense to just lease a car instead. The new technologies and gadgets are much more expensive to replace, and it is ideal if the whole purchase is not on the individual’s shoulders. Additionally, people love to lease for another great reason — they can afford more car by spending less money.
The other great part about an auto lease is that it is not going to stick you with yet another loan. That can be beneficial if you are trying to keep your credit freed up for other big-ticket items, such as buying a home. Or, it may just be more preferred to buying because you have had a bumpy road to face with the economic times of recent years.
Another great reason to lease is avoiding having to put up a down payment on a vehicle. Typically, you would need to put 20 percent down toward the whole purchase price of a vehicle to get to drive it off the lot. With leasing, you do not have to do that.
The important part about leasing is being smart. Know what you are getting yourself into before you sign on the dotted line of those lengthy tiny-print auto leasing contracts. You want to put down the least amount possible toward the lump sum payment, because you are just leasing, or renting the vehicle, and will not be receiving back any money that you put into it at the end of the lease.
Consider also how you drive. If you are easily going to stay below a standard lease mileage, such as at 12,000 miles per year, then a lease makes sense. If you are handily going over the 15,000 threshold every year then you may want to rethink the lease plans or just factor in mileage penalties into your leasing costs.
The other cool part about a lease is that you can look and feel richer than you actually are when you lease a vehicle. It means you can generally afford to drive a car that you usually could not otherwise get your hands on because you pay less in the short-term to lease.
Keep in mind, though, that you will likely spend more over the course of a decade if you decide to get involved in a handful of leases. You will not have anything to show for it. Though, you can just get another lease and enjoy the new ride.