Buying a vehicle is a considerable investment decision for most of us. It is not simply the down payment and the monthly loan repayments that are the issue. We also have to consider the ongoing costs of insurance, road tax, fuel, maintenance and repairs.
In many cases, leasing a vehicle may be the way to go both financially and practically. Here are the most common reasons that a car lease may be the better option for you.
A new car every few years
Most car leases are valid for between 3 to 5 years (but can vary widely and may be negotiated). The obvious draw of driving a new car every few years is the ‘keeping up with the Joneses’ factor. However, even more important is that every new model comes with improved safety features, better ride comfort, more space and the latest technology.
The monthly repayments for a car purchase are usually significantly higher than for a car lease or the very same make and model. For the sake of comparison, consider the car rental lviv rates. They are much more practical than loan repayments for a car purchase.
Another point to note is that leases do not come under the umbrella of sales tax, which will save you many thousands of dollars right from the start. You will have to balance this out with the terms and conditions of your lease, though. The most common reasons that lessees have an expense blowout is exceeding mileage limits, damage to the vehicle and prematurely ending the lease. If you can avoid all these, the odds are that a car lease will be the wiser financial decision.
One of the main advantages of a car lease is that major repairs (not caused by the lessee) are usually covered for a longer period. A vehicle that has been owned beyond its manufacturer warranty period can cause a huge dent in its owner’s pocket if there is a need for major repairs. On the other hand, non-driver caused damage or engine failure of a leased car is covered under a lease agreement. This can add up to many thousands of dollars just in the repair itself.
Car owners will also have to consider getting a temporary replacement car at their own cost. Meanwhile, such repairs are covered under a lease and the leasing company almost always includes a clause for a replacement vehicle while repairs are completed on the leased vehicle.
End of the road
One of the advantages of owning are car is that you get to sell it and make back some of the money you invested when you do so. However, the time and effort involved in attempting to find the best sale and coping with people coming to your house and kicking your tires can be off-putting to some.
At the end of a lease, on the other hand, the lessee simply drives the vehicle back to the same lot. Most car leasing companies encourage return customers with discounts on subsequent leases. You get to drive out with a brand new car with minimal effort on your part.