Lease A Car
Some humans like to lease the latest cars rather than buy them, would you do this? What are the benefits and risks involved?
Leasing a car rather than purchasing it has many benefits under the correct conditions. On a lease you can get a much lower monthly payment. Depreciation of the vehicle during the time that you drive it is not an issue either since you do not actually own it. This means that when your lease is up and you look to upgrade your vehicle you are not subject to how much is owed versus how much the car is worth. A leased automobile is not subject to major repairs as one that you purchase. On a lease you are responsible for routine maintainance but not major overhauls, depending on how your lease is written.
The major downside to leasing myself is the number of miles that I put on my car every year. A lease is written to include usually 12,000 miles per year that you will drive. Everything over that, at the end of the lease you are responsible for paying the difference in depreciation. I personally drive over 50,000 miles each year so this is no real option for me. With a leased vehicle you never have the comfort of saying that my car is paid off and I have no more payments, because as with any lease, you will always have that monthly payment.
I looked into leasing a car to drive for my work but found that with the number of miles I would be driving I would actually be paying more than I would be if I were to finance it through a bank and pay it off. I have been debating on getting a second vehicle for myself to drive as a personal vehicle rather than driving my work car everywhere and am still looking into possibly leasing my personal car since I will be driving no more than maybe 10,000 miles per year. In this scenario I believe it may be more beneficial.
I leased my first car, which was a Chevrolet Cavalier. Leases are typically easier to get financed, especially for lower income people, and also have a lower monthly payment. There is the mileage factor to consider. Usually you will either get into a 12000 or 15000 mile per year lease for 3 years. If you are someone who gets tired of cars in a couple of years, then leasing is the way to go. You basically get into a new car every 3 years. If you are looking at a car as a long term investment, then you definitely have to purchase. Trying to purchase a leased car after the lease is over is not cheap.
Would you pay $20 a day to lease a luxury car? Frequent payments can make consumers feel better about the benefits they are receiving from their purchase. More frequent payments can help people appreciate recurring pleasures and increase the likelihood of purchasing. The findings has implications for merchants and nonprofits. Source 6p.