Does leasing a luxury car costs less than financing?
Does leasing a luxury car costs less than financing?
Posted on April 1, 2021
Many people around the country have a luxury car on the top of their wish lists. Although many people would like to buy a luxury car, they are afraid that the price tag of such an exquisite vehicle would be out of their budget. Luckily, there are other ways to get a luxury car while also still staying within your budget. Is leasing the way to go when you are looking for a cheap way to drive a luxury car? Keep reading to find out.
Buying vs Leasing: What is the Difference?
When purchasing a car, many people choose to finance the vehicle and make monthly payments on it until the loan is completely paid back. Because of this, many people incorrectly use the words "buying" and "leasing" interchangeably. In reality, however, these two words have quite different meanings.
When you purchase a car, you are the sole owner of the car. Even if you have financed the vehicle through a lending company, you are still considered the owner of the vehicle while you are paying off the loan.
When leasing a vehicle, you are basically renting the vehicle for an extended period of time. When leasing a vehicle, you will be required to sign a lease agreement. The agreement will detail how long you are allowed to keep the vehicle - usually between one and three years. Once you have reached the end of the time period, you will return the vehicle to the dealer.
Advantages of Leasing a Vehicle
Both owning and leasing have their own set of advantages. While leasing will not be the right choice for everyone, it does have a few attributes that many consumers find attractive. Some of the benefits of leasing a vehicle include:
- Low Upfront Costs. When you purchase a car, you are usually required to make a down payment that can be around 10% of the purchasing price. When leasing, however, there is no down payment to make. So, you can essentially drive off a car lot in your new car with a minimal amount of money in your pocket.
- Low Monthly Payment. Because you are not required to pay for the full price of the vehicle, leasing monthly payments can be as much as 30% cheaper than the monthly payments that you would be required to pay if you were buying the vehicle.
- Hassle-Free Trade-Ins. If you are financing a vehicle and decide you want a different car, you will either have to trade it in or try to sell it. That can be a bit difficult if you have negative equity in the vehicle, or if it is not paid off yet. With a lease, however, you know that you will be able to turn it in and walk away in a few years, which makes finding a new vehicle much easier.
Is it Cheaper to Lease a Luxury Vehicle?
If you have been thinking about getting a luxury vehicle but do not want to pay the full price for the vehicle, then leasing may be the right choice for you. Leasing the luxury vehicle allows you to enjoy all of the benefits of driving a high-end car without having to break the bank. If you have any questions about leasing a luxury vehicle, feel free to contact us today.
Does Leasing a Luxury Car Cost Less?
Many people around the country have a luxury car on the top of their wish lists. Although many people would like to buy a luxury car, they are afraid that the price tag of such an exquisite vehicle would be out of their budget. Luckily, there are other ways to get a luxury car while also still staying within your budget. Is leasing the way to go when you are looking for a cheap way to drive a luxury car? Keep reading to find out.
Buying vs Leasing: What is the Difference?
When purchasing a car, many people choose to finance the vehicle and make monthly payments on it until the loan is completely paid back. Because of this, many people incorrectly use the words "buying" and "leasing" interchangeably. In reality, however, these two words have quite different meanings.
When you purchase a car, you are the sole owner of the car. Even if you have financed the vehicle through a lending company, you are still considered the owner of the vehicle while you are paying off the loan.
When leasing a vehicle, you are basically renting the vehicle for an extended period of time. When leasing a vehicle, you will be required to sign a lease agreement. The agreement will detail how long you are allowed to keep the vehicle - usually between one and three years. Once you have reached the end of the time period, you will return the vehicle to the dealer.
Advantages of Leasing a Vehicle
Both owning and leasing have their own set of advantages. While leasing will not be the right choice for everyone, it does have a few attributes that many consumers find attractive. Some of the benefits of leasing a vehicle include:
- Low Upfront Costs. When you purchase a car, you are usually required to make a down payment that can be around 10% of the purchasing price. When leasing, however, there is no down payment to make. So, you can essentially drive off a car lot in your new car with a minimal amount of money in your pocket.
- Low Monthly Payment. Because you are not required to pay for the full price of the vehicle, leasing monthly payments can be as much as 30% cheaper than the monthly payments that you would be required to pay if you were buying the vehicle.
- Hassle-Free Trade-Ins. If you are financing a vehicle and decide you want a different car, you will either have to trade it in or try to sell it. That can be a bit difficult if you have negative equity in the vehicle, or if it is not paid off yet. With a lease, however, you know that you will be able to turn it in and walk away in a few years, which makes finding a new vehicle much easier.
Is it Cheaper to Lease a Luxury Vehicle?
If you have been thinking about getting a luxury vehicle but do not want to pay the full price for the vehicle, then leasing may be the right choice for you. Leasing the luxury vehicle allows you to enjoy all of the benefits of driving a high-end car without having to break the bank. If you have any questions about leasing a luxury vehicle, feel free to contact us today.