Benefits of Leasing a Car

Many people who find themselves living in an area for a short period of time, but long enough for a rental to be a bad investment, will want to lease a car. However, these are not the only people who take advantage of the various leasing options available to the market. Many people lease cars to drive the newest and greatest cars at a lower cost than outright purchasing the car. Although leasing a car is not ideal for some, it is an option that has many great perks.

Better Car Selection

Leasing allows you to own a car for less. Albeit, a leasing term is usually shorter than the term that you would finance a car for, lease payments are typically cheaper and as soon as your lease is complete, you give the car right back to the dealership. With the cheaper monthly payments required to lease a car, you will be able to purchase more premium vehicles for the price that you would pay to finance an average car. This in turn opens up a wider selection of vehicles for you to drive. Some lease vehicle deals give a price incentive if you own a non-GM vehicle and switch.

Repairs & Insurance

When you lease a car, your car’s repairs are covered by the manufacturer under a warranty. That means that repairs are taken care of, by a dealership, free of cost to the customer. Additionally, some programs offer coverage for common maintenance routines, such as oil changes. On the other hand, when you purchase a car, a manufacturer’s warranty is limited to a certain mileage or time-frame; even then, certain things are not covered under warranty.

Although you will need your own insurance for a lease, many leases offer gap insurance which covers a car that is totaled in an accident. Gap insurance allows someone who is leasing a vehicle more coverage in the event of an accident.

Depreciation Avoidance

When you lease a car, you do not need to worry about what your car will be worth in a few years time. Depreciation is a product of age that can eat away at the value of a car over time and use. This process begins as soon as you purchase a car. When you lease a car, the difference between the retail price and the residual value of the car are what determine the monthly payments that you will have to make on the car. However, when you own a car only the retail price determines how much you pay on the car. When it is time for you to sell a car that you own, the car will be worth less than the retail price that you paid for the car.

Conclusion

Are you intrigued in leases now? You should be. Leases have many additional benefits to offer customers. With the option of driving a premium and new car, at a fraction of the cost, with repairs taken care of by the manufacturer, why would you not inquire about the leasing program?