Everyone wants to own a vehicle. In fact, a vehicle is no longer a luxury, it is essential. But then, did you know that it would be advantageous to lease a vehicle instead of owning it? Yes, this would seem surprising, but it is a fact that leasing instead of purchasing is a better option.
While most people save money planning to buy a vehicle, it would be more prudent to lease and use the savings for some other purpose.
The monthly payments
When you buy a vehicle you pay monthly instalments for the vehicle including the principal amount. But when you take a lease, there’s no principle to worry about, so the monthly payments are much lesser. Payment for fuel and insurance would be the same.
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When you lease you can select the latest, best and fuel efficient model without worrying about how much it costs, because you are not buying it, you are only leasing it. Also, when you lease you can get the latest and best model to drive.
When you lease a vehicle, you are getting it new. Generally, a lease period would be for 3 years. This is the best period of the vehicle’s life. And you can enjoy a smooth, trouble-free driving experiencing without facing any troubles. And if something does go wrong, nothing to worry, the vehicle would be under warranty.
After the lease
Once the lease is complete, you can just walk away. And take a new lease for a new car. That’s the biggest benefit of leasing. When you buy a car, it remains with you for life and as the car grows old, you need to take care of all the repairs and maintenance. This is a significant plus for leasing as you can get the latest car, lease it for 3 years during its best period and once done, go for a newer car to lease.
You need not spend big
If you buy a car, you need to put down a big amount as principal or else you need to buy it outright, in which case the investment would be even more. Instead of investing such a big sum of money and tying up funds, it would be prudent to choose a lease.
No additional costs
There are no additional costs like a new battery or investing in newer safety measures because you would have already got a new car on lease, which comes with all the latest stuff. So you don’t have to spend anything more. You don’t even to spend on roadworthy tests and the like because they would be needed only after three years, by which time you would have bid goodbye to the car.
So it is very clear that in the short term, leasing is the best option. Before you decide to go on a lease, you need to keep a few things in mind:
- Make sure you are clear about the lease duration, mileage covered and any other terms.
- Scout around to different leasing agencies, till you get the one who gives you the best deal.
- Verify that the deal is a closed-end lease, which will allow you to walk away without any liabilities once the lease period is over.
Leasing a vehicle offers multiple benefits, so it can be seriously considered as an option for those looking for a new vehicle.