Many financial experts recommend, when looking for a new vehicle, that you lease rather than buy, regardless of whether you’re looking for a traditional car or looking to lease a luxury car. Three of the biggest reasons for this advice are as follows: less depreciation, more stability, and better maintenance. This article is going to go into more detail about these points and give you a little more information on why financial experts say you should go the leasing route over the buying route.
Less Depreciation
The first reason financial experts recommend that you start looking to lease a luxury car rather than buy one, has to do with depreciation, which, simply put, is the reduction in value of a product; you pay less of the vehicle’s depreciation when you lease. The reason for this is because, when leasing a car, you’re only paying for the depreciation of the car during the time you have, rather than the total cost of depreciation. When you own a car, you are the hook for the entire reduction in value of that car, from the moment you drive it off the lot to the moment you no longer want it.
Better Stability
The second reason financial experts recommend leasing has to do with the stability of a job. For instance, you never know if you’re going to end up losing your job and not be able to make the monthly payment on a bought car. Having a lease for a certain amount of years at least lets you see an end date if you fall on hard times.
Secondly, if you have a job that could potentially move you around a lot, you don’t want to have to move a vehicle if you don’t have to; this is especially true if your job sends you overseas. Being on a fixed lease for a few years ensures that you can pick up and go when your job needs you to move.
Finally, if you just can’t afford the car anymore because something comes up, such as a new baby, you have the option to turn your car in once your lease is over. If you were in the same situation after buying a car, you would either have to keep making the payments or deal with the possibility of having it repossessed and going on your credit.
Maintenance
The final reason why leasing is often better than buying is the cost (or lack thereof) of maintenance. When you buy a car, you have to pay for all of the maintenance out of pocket, which can really add up, but leasing a car usually comes with a warranty that covers a lot of maintenance issues, besides things like oil changes and normal scheduled maintenance.
These are just 3 of the biggest reasons, but there are plenty more. Not only is it less commitment, but you also have more flexibility and peace of mind. If you still aren’t sure, you can talk to a financial expert and they will be able to talk you through the leasing process and answer any question you may have.
