Planning on getting your own ride? Instead of buying one, why not get a lease? Many think that leasing a car is more expensive than buying, but it actually depends on your preferences and priorities. It's also a more flexible option if your budget doesn't allow huge down payments and monthly repayments. If you're still having second thoughts about getting a car lease, here are four reasons why it's the better option.
1. You get to enjoy lower monthly payments
Compared to when buying a car with the same terms, leasing requires lower monthly payments. This is perfect if you want access to more cash or a highly monthly payment isn’t within your budget. The reason why leasing requires lower payments is that you’re just paying for the value of the car you’re using. Since you’re not paying extra money in ownership equity, expect lower payments every month with a lease plan. If you choose a financing package that offers more flexible payment terms, making regular payments becomes even more manageable. With lower repayments, you'll have more cash for other necessities. Imagine if a family member suddenly becomes ill and has to hospitalized. With some extra cash, dealing with an emergency won't be too much to handle.
TIP: When shopping for a financing deal with low repayments, double-check if they already include the fee for registration and insurance. Aside from the actual fee, you'll have to set aside time to file the paperwork for these requirements.
2. There’s no need for a 20% down payment
When buying a car, you need to save money for the down payment, which is usually at least 20% of the purchasing price. If this isn’t possible with your current financial status, you’re better off with a car lease. Many car financing companies such as Alpha Finance offer budget-friendly upfront fees, making it easier for you to drive away with your own car. This is especially helpful if you want to have your own car quick. If the car financing company offers luxury models, you get to drive away with your dream car without having to pay a huge, upfront fee.
TIP: Look for drive-away deals that include flexible repayment terms and offer a lot of options when it comes to car models and makes. Don't forget to ask about comprehensive insurance since this could cost you lots of money in the long run.
3. It’s perfect if you’re planning to get a new car in a couple of years
If you prefer to get a different car or car model every couple of years, you’ll get more value for your money if you choose a lease. This is because lease packages usually run for two to three years. Once the two- or three-year lease plan is over, you usually have the option to upgrade your car. So, if after a few years, you decide to get an SUV because you're planning to have a family, an affordable upgrade option allows you to do just that.
TIP: Stick to a car financing company that offers a variety of car models such as SUVs and vans. You'll never know what type of car you'll need after a few years.
4. You don’t have to deal with selling a used car
After the lease plan, you don’t have to worry about selling the used car because a lease package usually comes with these options after the term: buy, upgrade, or return. Once your lease term expires, you don’t have to trouble yourself with putting up your car for sale and screening potential buyers because you can just return the car. After all, selling a car can be such a hassle.
TIP: Finding the right car buyer can take months, so it's better to choose a lease with a return option in case you want a different car.
Just like with a car loan, you can always try to negotiate your way to a better leasing deal. Flexible lease payment terms are also within your reach since many car financing companies offer weekly or fortnightly payment options. Many car leasing companies today such as Alpha Finance also provide more options for those with bad credit history. So if you’re having problems getting a car because of a poor credit score, go for a company that offers budget-friendly financing packages and flexible payment plans. When thinking of getting your own ride, check out your leasing options for more budget-friendly terms.