Newstricky| Some people automatically assume that leasing a vehicle is a bad idea because they never get to own it. In reality, there are many benefits to leasing a car, especially a luxury one.
Not everyone wants to pay for repairs or have the funds to buy a new vehicle. Others may want to wait until they can get the car they actually want, but would still like to drive a nice car in the meanwhile. Leasing doesn’t work for everybody, however, and there are cases where it would indeed be a better idea to buy the vehicle upfront or through financing. Let’s take a look at the pros and cons of both options and see which one would be better for you.
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The Pros and Cons of Leasing
The biggest benefit of leasing a vehicle is that it will be under warranty and the company will take care of all covered repairs. Another benefit of leasing a luxury vehicle is that you can get more cars for less. You won’t have to put as much money down on the vehicle and leases are lower than monthly loan payments on comparable vehicles.
The biggest drawback, however, is that you never get to build equity in the vehicle. On the other hand, you don’t have to worry about depreciation or the vehicle suddenly becoming unpopular with the public.
Where leasing doesn’t make sense for many people is when it comes to mileage limits. Most leases come with a mileage limit often ranging between 10,000 and 15,000 miles. If you intend to do a lot of driving, then you might either have to limit it or pay extra. That’s not something everyone will be willing to do, and you’ll have to consider this before you go for that choice.
The Pros and Cons of Buying
The biggest disadvantage of buying a luxury vehicle upfront is that you’ll have to deal with a bigger initial sticker shock, but that’s about it. Besides that, you can get most of the benefits of leasing a vehicle when buying one.
If you’re worried about repairs, then all you have to do is pick a vehicle that’s under warranty. And, even if it’s about to run out, you can keep repair costs to a minimum by choosing the right model and garage. A specialist garage like the European Exotic Center can provide an exotic car service and will be able to perform repairs fast and for an affordable cost for you. As long as you’re aware of what usually goes wrong with the model you had your eyes on and go for a reliable brand, repairs shouldn’t be that much of an issue.
As far as depreciation goes, you could avoid a lot of it by buying the car at the right time. Depreciation starts slowing down after the third year, so buying a vehicle that’s three years old will allow you to get it at a much cheaper price while still being covered by a warranty.
So, What’s The Best Option?
It’s all a matter of finances and what your objectives are. If you want to keep monthly payments and expenses under control, then you can go for a lease. But, if you want to be able to get some money back on a sale and drive a vehicle without limits, then buy the vehicle. You should also know that interest rates on luxury car leases are way higher than on regular cars, so you may not make that many savings by leasing.
If you were wondering whether buying or leasing a vehicle would be better for you, we hope you have a clearer idea now. Both options can be considered, so don’t dismiss one over the other and get informed.
