Leasing a car can be a great alternative for some people rather than buying the vehicle outright. Leasing provides a few advantages over buying, which we’ll get into shortly. If you’re not to familiar with leasing, your not alone. Leasing is somewhat of a new concept that came in the automobile market about 12 years ago. Now with consumers learning the options available to them, approximately over 25% of all new vehicles (cars, trucks, bikes, etc.) are leased, and between 70%-80% of all luxury vehicles as Mercedes Benz, BMW lease, Lexus, Hummer are leased.
Leasing is a popular option to acquire a vehicle, and who wouldn’t consider it? Why purchase someone for $30,000 or more that doesn’t appreciate over time. Worse yet, as a depreciating value faster than a rock falling from the sky. Leasing a car in today’s economic times is even a more popular than every, as consumers are tightening up their wallets and seeking more affordable ways to meet the financial obligations on their vehicle.
When asking yourself “why lease a car?”, simply consider leasing an alternative means of paying for, or financing, your vehicle. You can acquire a new car lease, or a short term car lease. Whichever option, leasing is just another way to pay for that purchase.
The benefits of leasing can be very attractive. Most importantly, auto leasing offers the consumer significantly lower monthly payments over a loan used to purchase a vehicle outright. This is why leasing is attractive to those consumers getting into luxury vehicles. It helps the consumer get into their dream car, but at a much less cost, and no long term commitment. When the lease term is up, they simple return the car and get into the next latest model.
More consumers are moving towards the option of leasing a car over buying. One major reason is the public awareness of what auto leasing is all about.
Another is the cost of new vehicles seems to be increasing, or the consumer wage is decreasing, and thus makes leasing a more affordable option.
Another is tax laws changes that removed the finance interest deductions on vehicle loans from the bank. In the end, as with any major purchase, consumers have become more educated on their options when financing the purchase of an automobile to put more money back in their wallets.
Another reason why more consumers are getting into auto leases is the due to the way automobile manufacturers, and their financing companies (ex. GMAC) has changed the way the auto leasing programs work for consumers. Their basically a massaged version of the leasing programs for business, and tailored to the individual consumer.
In the end, probably the biggest reason why consumers like you and I consider getting into an auto lease is:
- save money on a car
- its more affordable to get into a more higher-end, luxury vehicle
- less time commitment
- less responsibility and obligations
- less monthly payment costs
- buy what appreciates, rent or lease what depreciates in value
Auto leasing seems like an attractive option to consider.
Next: Types of auto leases