Car Leasing: The Affordable Way To Car Ownership

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The decline in oil prices has made it ever more appealing to score a vehicle of your own to cruise down the highways and back alleys. However, car prices may still prove to be a little too steep for those operating on a limited budget.

But, before you take out a car loan from the bank, find out if buying or leasing is a perfect fit for you. Buying a car can prove your ownership, but leasing a vehicle is a more pocket-friendly way to get your ride on.

Buying or Leasing?

When buying a vehicle, you’re basically paying to own a piece of machinery that can take you places. This means that when you’re done with all the heavy payments for a number of years, you finally made a great investment with the car of your dreams. As you continue to pay off your loans, you gain equity for the vehicle. Once the monthly payments disappear, you’re free to ride your car for life. You can take your car wherever you want without being restricted by the mileage coverage.

Leasing a vehicle gives you more ease with your spending. You can get the same car that you want for a lower monthly payment, but the main drawback is that you do not entirely own the vehicle. As with the word “lease,” you are basically just renting the vehicle at a longer span of time. Usually, cars are leased for 12 months to 3 years. Instead of paying the full amount of the vehicle, some terms only requires you to pay the expected worth of the vehicle once your lease is over. The residual value dictates the amount you pay and this is computed depending on the place where you’ll get the lease.

Cost of Leasing

On paper, it would appear leasing can be a cost-effective solution to getting your own set of wheels to ride. Those getting a brand new car need to shell out cash first before the car gets released to them. Some lease offers promotes low payments and reasonable monthly fees. Okay, you still have to spend your money with maintaining and repairing the vehicle while it’s under your use, but that amount is significantly smaller compared to the cost of buying a brand new one.

You can also avail of financing terms from banks to help you out with the lease’s down payment and monthly payments. Some dealers can even waive the down payment, giving you the ability to drive a vehicle for free.

Always New

Another perceived benefit of leasing is the ability to change vehicles if you feel like exploring a new ride. Because leasing terms can usually end early, you can easily pay to lease another vehicle at a lower cost than what you have to pay to purchase a new one. Getting out of the lease before the contract expires can lead you to higher costs, so we recommend getting a reasonable duration, so you can try your hand at a new car once your lease is up.

You can always find the best lease deals around New Jersey and various firms and banks are always ready to help you figure out the low payments that you need to make. If you’re careful with your vehicles and you only intend to use it minimally, it’s best to lease a car than buy a new one. You can save thousands of dollars and look slick while driving down the highway.

Image credit: Car leasing made simple

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