The Pros of Leasing

Leasing offers several advantages over buying, starting with a noticeably lower monthly payment. When you lease you can get a better, or just more expensive, vehicle on a smaller budget. Depending on what the dealer is offering at the time, you may be able to select from a higher up front down payment so you can have lower monthly payments or a smaller down payment with higher monthly payments. For example, someone that doesn't have a lot saved up, but can afford larger monthly payments would benefit from the lower down payment method, whereas someone who has a lot in savings, but not as much money coming in, would benefit from the smaller monthly payments.

The length of the lease also sets a finite duration that you will own the vehicle. If you're the kind of person that wants a new vehicle every three years, leasing offers some appealing perks. You'll always have a car that's less than three years old so it'll come equipped with the latest and greatest technology and safety features. You also will not be taking a risk on the depreciated value of the vehicle at the end of the three year lease period. When you first take out a lease, the dealership will determine a purchase value that you can opt to pay at the end of the lease period to claim ownership if the vehicle. If the vehicle ends up losing a substantial amount of value, you can opt to pass on buying the vehicle for the pre-determined cost and avoid having something that won't be worth as much as you want if you sell it. You also are protected from trade-in values at the end of the lease. If you own the car and plan to sell it after three years, the most money you can get is what a dealer or independent buy will offer you which may end up being less than the Kelley Blue Book value of the vehicle. Leasing a vehicle also means you don't have to deal with the unreliability and repairs associated with an aging vehicle. A typical three year lease includes a bumper-to-bumper warranty so you won't be stuck with major repair bills if something breaks. Repairs are usually covered in leases. Additionally, you won't have to worry about expensive maintenance costs because you won't own the vehicle long enough for expensive parts to wear down and need replacing.