Purchasing a new vehicle involves a long-term commitment. You have to spend a significant amount of cash upfront. Beyond that, you also have to make payments for two to seven years. What’s worse is that the vehicle’s value may decrease over time.
This is when leasing a car becomes handy. Vantage car leasing services allow you to put little to no money as a down payment. Moreover, you can also choose whether you want to commit to an extended- or short-term car leasing plan. Beyond that, you don’t have to worry about a considerable depreciation since the bank will shoulder it.
If you plan to lease a car but are still hesitant about whether it is a good choice, here are some reasons that may help you decide:
1. It Does Not Require High Upfront Cost
One of the things that made leasing more advantageous than buying a car is that it does not need a substantial down payment. In fact, you can sign a lease contract by spending the cash you have in your wallet. However, it is worth noting that the lease payment for no-money-down is a bit higher.
On the other hand, if you think the monthly payment is still expensive, you may choose to lease a more affordable car to keep in your finances.
2. Acquire New Vehicle Hassle-Free
In most cases, it will only take you two to four years to finish your car leasing contract. Considering that lease terms require short commitments, you can upgrade to a new car with the latest safety standards and technology without any problems.
Once your car lease term is complete, all you have to do is to bring it back to the dealership. After that, you can decide whether you want to sign a new leasing contract with another vehicle.
3. Lower Repair Cost
The car dealers offer a manufacturer’s warranty. In line with that, you can enjoy lower repair costs considering that lease terms are very short. Aside from that, the maintenance cost will also be shouldered by the car manufacturer.
Furthermore, checking the maintenance and repair services covered by the maintenance or warranty agreements before signing the contract is important. This will help you prevent unexpected bills.
4. Lower Monthly Payments
Another advantage of car leasing is that it has lower monthly payments. This will help you save and manage your finances better than purchasing a new vehicle. When you buy a car, you need to pay its upfront cost and interest. However, lease payments are much lower that anyone can handle.
Rather than paying the upfront cost of the car, the car leasing monthly payment will cover the taxes, rent, and depreciation costs. Considering that you only need to finance the depreciation rather than its wholesale price, your monthly payment will be much more inexpensive.
You can use these savings to upgrade to a more desirable and newer model.
5. Leasing Offers A Short Commitment
No one can predict what will happen in the future. Aside from that, many individuals also think of their finances and job security, making car purchases less appealing.
Instead of buying a new car, people choose car leasing over purchasing because it is more affordable. Moreover, car leasing agreements are flexible, considering that you can transfer them to another prospective leaser without the hassle of financial penalty.
6. Manufacturer Incentives Abound
Carmakers provide incentives that result in more affordable car leases or purchases. Many confirm that most agencies offering car leasing services offer these affordable incentives. However, you can convert these incentives to sales rebounds.
It is best to visit the car manufacturer’s website and look for the special incentives it offers. The lease terms will show the three important contract aspects, including the lease duration, monthly payment, and cash involved in the signing.
7. You Can Buy The Car At The End Of The Lease Contract
Car leasing agencies offer an option to own the car once you reach its predetermined cost. However, if you think the purchase price is higher than the car’s value, you can choose another car model.
Although this may leave you frustrated for not buying the car in the first place, it will give you a high possibility to try the vehicle for several years before going into a long-term commitment.
Leasing a car might not be the first option to come to your mind when you decide to have a vehicle because of its unclear benefits. However, if you dig deeper, you will know that car leasing is more affordable and offers many benefits without spending a lot upfront.