Why Lease?
You've probably heard more than once that car leasing is a bad deal. And in many cases, it definitely makes more sense to purchase a car outright. But this doesn't mean leasing a car is a bad move for everyone. There are several plus points to leasing a car that may or may not be attractive to drivers. Here are some points when considering a lease:
       Brand New Car
Leasing a car is a good option for people who want to have a new car with all the latest features. At the end of a short lease period, two to four years, the driver can turn in the car and lease a brand new vehicle with all the latest bells and whistles.
      No Long-Term Commitment
Leasing is advantageous for people who know they will not need or want the car for more than a few years. For example, someone who expects to move every few years for work might opt to lease a car rather than deal with the hassle of moving and re-registering the car in each new location. Leasing is also perfect for people who, for one reason or another, are not interested in owning a car long-term. At the end of the lease period, the car is simply returned; the lessee does not have to bother selling or trading in the car.
      Few Maintenance and Repair Issues
Since the leased car is typically brand new, the chance of serious maintenance or repair issues coming up is fairly small. In most cases, the car remains under the manufacturer's warranty for the entire period of the lease, a further financial advantage. Many lease agreements include "gap insurance" or "waived gap liability," meaning that if the car is stolen or totaled, the lessee is not responsible for any remaining payments that regular insurance does not cover.
      Lower Monthly Cost
Lease payments are lower, sometimes substantially lower, than loan payments for the same vehicle, and there are often no upfront charges, such as the down payment required when purchasing. For some people, this is the bottom line. Leasing allows a person to drive a brand new car for less money. In exchange for lower payments, the lessee does not have ownership of the vehicle when the lease term is up, as they would if they had purchased the car and made the higher payments.
Leasing works best for people who like driving new cars, who don't want to worry about maintenance issues, and who are not interested in owning a car. Around 20% of all new car transactions are leases, so there are definitely people out there who love the thought of always driving a new car and find that leasing is a good option for them.
