When Should You Consider Leasing a Vehicle
Every person is different, and a wide range of circumstances can impact if it is better for you to lease a vehicle or purchase one. Generally it is recommended to purchase your vehicle outright, but there are times when you may want to consider a lease. If you are looking to upgrade your current vehicle and are trying to decide between leasing and buying a car, here are a few things to consider before you make that decision.
Your Financial Situation
Depending on your financial situation, it may make more sense for you to lease your vehicle. When you go to lease a vehicle, generally the monthly payment will be slightly lower than if you had to take out a loan to purchase a car. So if you do not make enough money for a full loan payment, then considering a lease might be a good option for you.
If you don’t think you can afford a full down payment, leasing is a great option to consider. Generally when leasing a vehicle, the down payment is far lower than if you were to purchase your car outright. It also will mean that you will have a lower sales tax since it will likely just be calculated on the monthly payments not the entire cost of the vehicle. Leasing would be good to consider since it doesn’t have such a dramatic impact immediately on your finances.
Length of Time You Will Use the Car
This may be the number one thing to consider when leasing a vehicle. If you only plan on using the vehicle for a few years, then it might be a good option to lease your car. The only trick is that if you had to break the lease, it can get extremely costly depending on what the terms and conditions are. For example, you might have to pay a few months of extra payments before you are allowed to break the lease. This is something that is incredibly important to consider before you lease your car.
How Hard Are You on Vehicles?
Some people tend to be very hard on their vehicles. It is important to evaluate how you treat and maintain your vehicle prior to leasing a car, otherwise you may have extra fees to deal with depending on what the terms are in your agreement. For example, if you have children and there is a likelihood that the car will have signs of wear and tear, then it may not be the best option for you to lease your car.
Another example would be if you have a tendency to get scratches on your car, you might want to give leasing some serious thought. When your lease ends, the company may determine that there is a significant amount of wear and tear, they may charge you for it, which can be pricey.
How Many Miles Will You Put On the Car?
If you do a lot of driving and think that there is a strong chance that you will put an excessive amount miles on your vehicle, leasing might not be the best option for you. It is important to stay on the lower end for mileage, otherwise you may get charged per mile for every mile that you go over the agreed upon mileage.
For example, some companies may charge 15 cents per mile. If you go 5000 miles over the agreed upon limit, that adds up quick and could cost you an additional $750. However, if you do not travel very much and will likely not go over the limit with your mileage, leasing a car is a fine option to consider.
How We Can Help
If you are considering leasing a vehicle, Automotive Imports is able to help you determine what the right fit will be for you. We also have a fully staffed shop and can provide any services and repairs that may be needed on your vehicle. Convenient to residents of Boulder, Lakewood, Centennial, Westminster, Littleton, and Denver, CO, we take pride in excellent customer service and keeping our clients happy. If you would like to request more info about leasing a vehicle or would like to schedule an appointment, please contact our offices where a representative will be able to assist you.