In today’s world there is a lot of ways to get a loan to purchase a car but do you really want to be paying large car loans for years? The solution is to pay less on a car lease. At the end of a car lease, you can decide on whether or not you want to purchase the car. Here are five reasons you should get your next car on lease.
Payments Take Into Account Depreciation
When you make payments on a car lease it takes into count how the car depreciates over time. You pay the difference that exists between the sale cost and the value of the car down the road. When you buy a car you spend the amount of money at the sale, plus interest if you take out a car loan. Over time the car depreciates and you lose part of the value that you paid for the vehicle.
A Loan Allows You To Get A Better Car
If you spend the money that you would normally spend on a loan, you can get a much better car with a lease. You can get the same car for less money than a loan would be too. This means that your options open up greatly when you decide to lease a car. If you get the same car on a lease you can save the extra money for other things in life.
At The End Of The Lease, You Can Get A New Car
A lease lasts for a period of time that is determined when you start your lease, for example, a 36-month lease lasts for three years. At the end of that period, you will typically have the option to buy the car. You will also have the option to lease a new car that appeals to you. This allows you to get a new car often.
Maintenance And Repairs Are Not To Worry About
When you purchase a car on a loan you are responsible for all of the repairs and maintenance. Unless you damage the car, during a lease the dealership is responsible for the maintenance and repairs because they want to be able to sell the car when you lease is over. That means that they have a vested interest in keeping your car running.
The Down Payment Is Lower or Not Needed
It goes without saying that when you get a car loan the bank wants you to have skin in the game so they require a down payment. Leasing works differently because the car still belongs to the dealership in the end. As such some dealers do not require a down payment for a car lease. The down payment is used for people who have a spotty financial history or for people who want to lower their monthly lease payments. Save that money that you would have used for a down payment to buy a house or to get something nice for yourself.