In this article, we’ll review leasing pros and cons in clear and simple language so you can decide if leasing a vehicle is the right move for you. Have a leasing question? Let us know! Our team at Stateline Nissan is here to help, proudly serving drivers from across the East Providence, Cranston, and Pawtucket area.
The Pros of Leasing a Vehicle
There are several reasons why you might choose to lease a vehicle. For example, one leasing pro is the option to get behind the wheel of a new car every few years. Since a standard lease is typically three years in length, you can lease the latest models with the latest technology every time your lease ends.
Speaking of the end of your lease, that’s another major benefit. When your contract is up, all you have to do is turn over the keys and pick out your next vehicle. There’s no need for you to worry about trading the car in at a dealership or trying to find a private buyer and negotiating price.
There’s also some financial incentives for leasing. For one, monthly lease payments are usually much less than monthly auto loan payments. Why? Well, when you’re paying an auto loan, you’re paying for the entire value of the vehicle. Meanwhile, in a lease, you’re mainly paying for just the depreciation in value while you’re leasing the vehicle and any fees or taxes.
On top of that, many dealerships will place additional incentives to make leasing even more affordable, such as little to no money down on certain lease offers. You’ll need to contact the dealership to find out what incentives they’re currently running, if any.
The Cons of Leasing a New Vehicle
Leasing a car might seem like an incredible deal, but it’s not for everyone. One of the major leasing cons is that you don’t actually own the vehicle. Instead, the vehicle belongs to the business you’re leasing it from. Since you don’t own the car, you can’t sell it if you come under financial difficult times.
Another con to leasing a vehicle is the restrictions set out by your leasing agreement. For example, you may be restricted on how many miles you can accrue or be charged fees for excessive wear and tear. Plus, you won’t be able to recoup these additional costs since you cannot sell the car at the end of the leasing agreement.
In the long run, leasing is more expensive than buying a car outright because you’re continually making payments for as long as you’re leasing vehicles. On the flip side, loans eventually get paid off and payments stop.
Should you Lease or Buy?
As you can see, there are a lot of significant differences between leasing and buying a vehicle. Deciding which option is right for you will depend largely on your lifestyle, priorities, and your budget. Although there are a lot of pros to leasing a vehicle, there’s almost an equal amount of benefits to buying. At the end of the day, it’s important to think about your specific wants and needs.
Learn More About Leasing a Vehicle
We hope you enjoyed this article about leasing pros and cons. If you have any questions, please feel free to reach out to us at Stateline Nissan. We have years of experience helping drivers in the East Providence, Cranston, and Pawtucket area find and drive the cars they need.
To learn more about the benefits of leasing, download our free Leasing vs. Buying Guide.In addition to leasing pros and cons, this helpful eBook also covers the major difference between leasing and comes with money-saving coupons.