At one point, getting a car meant you either financed a new or pre-owned vehicle or paid for it outright. However, leasing a car has been around since the 1950s, and today it’s a popular and enticing option for drivers in and around Muscatine to get a new vehicle without being burdened with an auto loan for several years. But while it’s a great way to get behind the wheel of a newer vehicle, it may not be the best route for everyone.
In this pros and cons of leasing a car guide, we’ll look at how you benefit from a lease and when you should consider financing a vehicle instead. If you’re in the market for your next vehicle, you’ll want to keep reading.
The Benefits of Leasing a Car
You Get a New Vehicle
The early days of a car, truck, or SUV’s life are the easiest and most fun. Everything is fresh, and it has that new car smell for quite some time. Not only that, all of the parts are brand new as well, so the chances of something mechanical going wrong are slim, at best. Since you’re effectively renting the car for a few years at a time, once your current contract ends, you can start a new one and have another shiny new vehicle to drive.
You Always Have the Latest Features and Tech
Building off the last point, consider this: every few years, manufacturers develop and enhance comfort, tech, and safety features for their new arrivals. When you lease, you’re always at the forefront of these advancements, meaning you always have the latest and greatest cars have to offer.
You Can Drive a Better Car
Leases are (almost always) more affordable than financing a vehicle. Put another way: you’ll likely find that the monthly financing payment of a lower-trim car, truck, or SUV is the same as the leasing payment of a higher-trim vehicle. When you finance a vehicle, the monthly payments are calculated against the entire value of the vehicle. When you lease, your monthly payment is calculated against the depreciation over time of the vehicle. You’re only paying for how much value the car will drop over a two- or three-year period. Therefore, you can afford a car that’s better equipped with luxury features when you lease.
You’re Covered by the Warranty
New vehicles come with a warranty; it’s a nice safety net to have in case anything goes wrong. Warranties are in the ballpark of five (5) years; leasing contracts last about three (3) years. This means that for the time you’ll be driving the car, you’re completely covered by the warranty.
If you were to finance the vehicle, you’d have the warranty for the full five years. However, after five years, some common maintenance issues crop up, causing you to bring your vehicle to the local service center for repairs (out of your pocket since the warranty ended). With a lease, you don’t need to worry about that.
No Trade-in Hassles
When you finance a vehicle, if you want to upgrade to something else, you need to worry about prepping your vehicle for a trade-in or selling it on your own to get the most out of your trade-in. With a lease, all you need to do is drop off the vehicle at our Muscatine dealership. No fuss, no muss.
Business Boon
Business owners are savvy to leases. In some cases, you may be able to write a lease off on your taxes. Check with your local tax professional to see if you can take advantage of this offer.
The Cons of Leasing a Car
No Equity
Financing a vehicle may seem like a big undertaking, and it is, but once the auto loan is paid off, you own the vehicle free and clear. This means you have additional equity, which is beneficial outside of the automotive world. When you lease, this isn’t an option.
Mileage Limits
Leasing a vehicle will come with a stipulation that you can only drive so many miles. Anything more than that, and you’re looking at additional fees, which can quickly add up. Be wary of your drives and road trips.
Continuous Payments
Leasing a vehicle means you have “ownership” for a brief period of time. Financing may have a longer payment term, but once it’s paid off, it’s yours. Leasing means you constantly have monthly payments to budget for. While you always have a new vehicle, you need to decide if that’s the right move financially.
Maintenance Fees
The warranty will cover big issues with your vehicle, but you still need to take care of the vehicle with oil changes, tire rotations, and more to ensure it’s in good condition. If you forget to stay on top of these things, don’t be surprised when there are fees you need to pay to get the car back into optimal standing.
Leasing FAQs
Is a Lease Right for Me?
A lease is the right choice if you value new features, new safety measures, and updated styles at an affordable monthly rate over building equity.
Is it Better to Lease or Finance a Vehicle?
Financing a car, truck, or SUV is the better option if you want to build equity. If you prefer newer vehicles regularly without worrying about equity, a lease is the better choice.
Where are the Best Jeep Lease Specials near Davenport?
While many dealerships offer lease specials, Ed Morse Chrysler Dodge Jeep Ram in Muscatine has an experienced team ready to help you find competitive auto leasing rates to suit your budget.
Explore Leasing Options near Davenport Today
At Ed Morse Chrysler Dodge Jeep Ram, we work with you to ensure leasing a vehicle is as painless as possible. Visit us at our Muscatine Chrysler Dodge Jeep Ram to explore our new vehicle specials or contact us online to schedule a test drive.
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