Some people say that leasing a car is a waste of time and money because when the lease period is over — typically in three years — you won’t own anything, and you’ll probably need to buy or lease another car, starting the cycle all over again. However, there are some compelling arguments in favor of leasing over buying. Here are a few reasons why in today’s economy you might find that leasing is simply the smarter choice.
No worrying about depreciation.
One of the oft-cited downsides of buying a new car is that it takes a massive depreciation hit, possibly putting you upside down by the time you sell it. By leasing, you don’t have to worry about that. The cost to lease a car is merely the cost of the estimated amount it will depreciate over the duration of the contract. In other words, you can drive the car you want at a reasonable monthly price, and you never have to be concerned about whether it will hold its value.
Drive better for less.
Not only does leasing allow you to save a lot of money up front, but it also has the arguably nicer perk of reduced monthly payments, making it easier to get behind the wheel of a nicer new car than if you had chosen to buy. For example, you could make the same monthly payments leasing a brand new luxury Cadillac lease as you could taking a loan out on a new non-luxury brand vehicle, giving you more bang for your buck.
No fretting over maintenance and repairs.
Similar to not having to worry about depreciation, you also don’t have to be nearly as concerned over maintenance and repairs when you lease. During your lease contract period, your new car is covered by the factory warranty, which means you can free up some of the budget you would have otherwise devoted to repairs. Meanwhile, when you buy a new car, you run the risk of paying extra on maintenance and repairs down the line. Accordingly, leasing could be less expensive overall and could guarantee you a nicer car.
We at Plaza Cadillac believe leasing a car is a great option to consider when shopping for cars. Come take a test drive to discover which vehicle you’d like to lease.