If you’re one of the many considering leasing a car, chances are you’re looking for a lower payment on a newer car that you don’t intend to keep for many years to come. Traditionally, purchasing has been reserved for consumers looking to have a vehicle for the long haul (and then some). Leasing, on the other hand, is a better option for consumers looking to make a change in their vehicle ownership and don’t want to be tied down to the same vehicle.
In this guide, we’re going to go over the basics of car leasing. You’ll learn the pros, the cons, and the best way to find a good deal on a lease.
The Pros of Leasing
To understand the pros of leasing a vehicle, you have to understand what you are really getting into. Think of a leasing program as an extended rental. Though the car isn’t yours, you get to keep it at home, drive when you want, and they take it back when your agreement is up. That means this is a perfect plan for those who love to get new cars and don’t really get attached to their vehicles.
It’s also great for companies who have to send their employees out to travel a lot. Since these cars aren’t yours, they tend to come with service plans from the dealerships themselves. Anything that goes wrong with one of these cars is typically covered under your leasing program. Just make sure you aren’t going over your mileage markers when you go this route for your company, as you can quickly end up paying more than the vehicle is worth, but we will get there.
Another great thing about leasing a vehicle is what it allows you to do. It lets you get your hands on a new car that you pay for monthly. That means you can get someone in your family who doesn’t drive a lot a new car. Grandma is only going to the grocery store and back, but she can’t afford to pay for repairs or maintenance for a vehicle. Instead of buying an old car outright, leasing might be the perfect option for Grandma. That way you know she is safe in her new car and won’t be stranded anywhere.
The last amazing part of leasing a vehicle is the prices you get. The monthly rates on leases tend to be well below the monthly payments you would make on a loan, and that means you can get a way better car through a place like oz leasing than you could from buying it at a dealership.
The Cons of Leasing
There are some catches when it comes to leasing a car. Remember, leasing is a rental agreement, so you have to stick to your terms. The first is the condition of the car’s interior. If you are a smoker that likes to smoke on the road, don’t lease a car. They will destroy you when it’s time to return the car, especially if you didn’t keep it constantly clean. They will nickel and dime you for offensive odors, burns, and other damage you have put on the car, as long as it’s on you.
Another thing you need to be aware of is the mileage in your agreement. Most leasing plans allow you anywhere from 12,000 to 15,000 miles a year. If you go over your allotted amount of miles, you will need to be ready to pay for it. Many leasing programs have clauses that state you will pay for every mile over the agreed limit, and it’s normally about $0.25 a mile. So, if your agreement is for 12,000 miles a year, and you return that car with 60,000 miles after two years, you’re going to have to pay up on those 36,000 extra miles. At the rates that we stated before, you’re easily looking at a $9000 return fee for your lease. At this point, you might as well buy the car from them and eat the loss. This can easily turn a great deal for a car into a terrible deal for a car because you are stuck paying them for that extra value you took off the car. Many parents run into this problem, especially when they choose to lease a vehicle for their child. Kids are really irresponsible, and they won’t take the agreements serious enough to understand the weight of going over your mile limits. It’s far too common to see a kid take that leased car well above the agreed mile markers, and the parents pay the price.
Finding a Good Deal
When you are looking for leasing deals, you want to shop around. Dealerships love getting people into leasing deals because it’s guaranteed money for moving vehicles off the lot. That means they will get aggressive about the deal, and try to pressure you by telling you that deal won’t last forever. That’s a load of crap. If they offer it to you once, make them sign something that holds that deal in place. Then, take that deal to other dealerships and see who is willing to beat it.
If you want to take the pressure off your shoulders, you can always look online for leasing deals. There aren’t the pressures of the salesman getting in your face about limited-time offers, so you can really take the time to look at what is on the table.
Finally, try to find recurring leasing deals. If you can lock in your good standing with the leasers, you can just keep getting new cars as they come out. Trade-in one lease and move to another. If you are the right customer, you can get just about any vehicle at any time because the dealers know they can sell your car off the lot.
Take your time, stack up the competition, and go get that new car.