Lease or buy that is the question and for most of us that question will be a difficult one to answer. To find out which option is best, you’ll have to take into consideration a great deal of variables. For example, if you have plenty of expendable cash then buying may be a good option for you. If cash is a little tight then a lease option is most likely the better option. Right now leasing has gained popularity for variety of reasons, one being that you can put yourself into a better car for roughly the same amount of money you would pay if you bought new. Another being the high residual value.Leasing has a lot of benefits to it, but most of us don’t know them and may even be pressured into buying new when on a dealership lot. So here are the benefits of leasing your next car.
1. Higher Residual Value. Like we said earlier, leasing will allow you to get into a much nicer vehicle for less monthly cost according to how much money you put down. The way a lease works is that your monthly payment is only paying for the estimated difference between current value and value at the end of the lease. This is called residual value. Since your lease will likely not be any longer than three years, your vehicle will have a higher residual value.
2. Easier Budgeting. Leasing is a great way to break into car buying if you are new, but also a great option for the seasoned vet. This is because it is easy to predict how much it will cost you to take full ownership of your vehicle, thus making it easier to balance your budget.
3. Cost Effective. Combining the previous points together you’ll see that with a higher residual value and ease of ownership that a lease is a cost effective option. Smaller monthly payments are a plus if cash is tight, and higher value at the end of a lease can ease your mind.
Keep in mind that there are some drawbacks to leasing as there are with buying new, you’ll need to weigh all possible options and make the best choice for you. If you like to be in the latest and greatest model & not be tied down, then leasing just might be the right option for you.
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