Is leasing a car right for you?

While many people automatically lean towards buying a new car, leasing a car can actually make a lot more sense for some people. For people that are interested in driving a new car every 3 to 4 years or do not want to deal with the time and money to maintain a car as it gets older, using a car leasing service is the best way to avoid this. If car leasing sounds like it might be the right choice for you, then all you need to do is a little research on what kind of car you want and find a great auto leasing service to help you through the process. If you are on the fence about whether or not leasing is the right choice for you, then you can always ask the car leasing service about what they can offer to you that car buying services can not. Here are a couple of helpful tips to help you figure out if leasing a car is for you.

1. How much do you drive? If you tend to put a lot of miles on your car, then a car lease could be troublesome for you. Most car leasing services will write a mileage limit into their leasing contracts. If you expect to drive more than 15,000 miles per year, then you will be asked to pay more for the car based on how many miles over the lease you end up going. For example, if you drive 20,000 miles per year, then you may be asked to pay up to 30 cents for every mile over the contracted limit This means you will own an additional $1500 at the end of your lease.

2. What is your monthly cash intake? If you do not have a lot of liquid cash coming in every month, leasing could be a better option. This is because the monthly payments towards a car lease are often lower than the monthly payments towards a car loan

3. Do you want a new car every 3 years? Most car leasing services like Smart Auto Leasing only carry new models of cars. The average car lease is 2 to 4 years, so this gives you the opportunity to change out your vehicle on a fairly regular basis with very little hassle.

4. Are you willing to pay for car maintenance fees? Most car leases expire right around the time that the manufacturers warranty expires, which is great news for people that do not want to pay for car maintenance. The car will go back to the leasing service right before things start needing work.

6. What period of time are you planning on keeping the car? If you want the car for more than 4 years, it might make more sense to buy. After the car’s bumper to bumper warranty expires, you will start to see more maintenance fees pop up. It will be time to change the breaks and the tires for example. If you do not want to pay these fees, then leasing is better option for you.

Comments are closed.