How Does Leasing Work?
Getting a new car isn’t just about picking the right make and model; once you’ve found the perfect vehicle, you’ll have to decide whether to buy or lease. Leasing offers many appealing benefits, such as lower monthly payments and less long-term maintenance, but it’s important to know all the facts. Learn how leasing works and see if leasing a car may be a better fit for you.
A vehicle lease grants the driver access to a car for a set period of time. Drivers can choose the length of their term, in addition to the amount of miles driven within that period. Leasing is similar to renting, in that the driver will never fully own the vehicle, and will need to return it once the term is over. The average car lease runs about three years, with a range of anywhere from 10,000 – 15,000 miles a year.
When the lease is over, drivers must return their vehicle, and may be given the option of either purchasing the car or beginning a new vehicle lease.
For many drivers, leasing affords greater access to today’s latest technology, features, and styling, all at a lower cost than buying outright. Because lease terms are relatively short, drivers can get into new cars every three years or so, avoiding the major repairs that tend to come later in a vehicle’s lifespan. Many drivers choose to lease because they receive:
- Lower monthly payments
- Fewer costly repairs and maintenance
- Less sales tax
- Easier approval rates
Because drivers do not have the ability to own the car outright, they will never reach a point where their car is paid off, locking them into perpetual car payments. It’s also extremely important to pay attention to average mileage. While lease monthly payments may be lower, going over the allotted mileage can be costly, with a charge of up to $0.30/mile, which can add up quickly. Some additional drawbacks to leasing include:
- Higher insurance costs
- Inability to break lease contract
- Maintaining the vehicle in good condition
Explore Lease Options
At Ray Brandt CDJR, we want our Marrero customers to find the car they love at a price that works. We regularly offer exciting new vehicle specials on today’s hottest cars, trucks, and SUVs. If you have additional questions on how leasing works and whether it’s a good option for you, contact our knowledgeable finance team today! We’re ready to teach you about financing as well.
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