Matt is a car salesman in Ontario, Canada, posting videos on YouTube and writing articles about cars.
Five Reasons You Might Want to Lease Your New Car Rather Than Buy It
5. You Never Owe More Than Your Trade-In Value
This is the biggest reason most people prefer to lease their vehicle. Cars are a depreciating asset, meaning they only go down in value. While some brands hold their value better than others (ahem...Honda), most do not. The worst part of any trade-in is finding out you owe more on your current vehicle than it is worth. Imagine going to a dealership and realizing you owe $10,000 on your car but the trade-in value is only $6,000. That $4,000 does not disappear and it gets rolled into your next car loan. This is never a fun experience. With a lease there's no risk of owing more than the car is worth. Simply hand over the keys when you are done and pick your next car!
4. Experience the Joy of a New Car More Often
Everyone likes getting a new vehicle! The process of buying one from a dealership may feel stressful at times but everyone enjoys that feeling of driving off the lot in their brand new car. With a lease you have less time commitment in the contract. This means you get to flip into a new car more often and enjoy that feeling every few years!
3. It's a Shorter-Term Commitment Than Financing
Commiting to your car for a shorter period of time is a benefit, because it gives you a new car more often and you aren't stuck in a six or seven year contract before you can get a new vehicle.
2. You Get More Car for the Same Money
With lower payments on a lease you are able to get into the trim level you really want! This is because you are not paying for the full value of the vehicle but just for the amount of time you are using the vehicle. So while a $300 bi-weekly financing payment may only get you a base model SUV, a $300 bi-weekly lease would get you the higher trim level with the features you really want!
1. You Can Get Newer Technology and Safety Features
The features that new cars are coming out with are incredible. These days new cars are getting luxury features in the base trim levels. People are changing cars more often than ever before and this trend is only going to continue. With a lease you are able to switch into a new car, with all its new-car features, more often!
Safety features are no different! Honda's Sensing Technology was once a premium feature but these technologies are in almost every trim level now. Safety features are always updating and improving. By financing you are able to stay up to date with the latest and greatest!
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
Brad on May 25, 2019:
Interesting article. I have leased and owned vehicles including a couple of brand new corvettes and Cadillac.
Both have problems? And most modern day car leases put a big amount at sign in . In California, car registration fee is based on the price of the vehicle, not the weight as in some states.
This means that every new lease puts you at the top of that fee, where as the owned and kept car goes lower as it value goes lower.
In California the 10,000 or 12,000 mile per year of most leases will result in miles charges maybe 25 cents per mile.
To get all the new gadgets on the new cars means that your base price will be long gone in the rear view mirror.
I think the trade off is when buying a vehicle, you could comfortably be in it until the warranty goes away. Then you could start paying big bucks. And leases don't cover all the costs, like tires, and you have to pay for the car maintenance that is required by the car company to keep the warranty valid.
Today, it is easier and cheaper to buy new cars because the price has been set, but no one really understands lease agreements.