How Leasing a Car Saves You Money

Leasing allows you to finance cars that are much beyond your purchasing range and keep your options open for the future. Not only do you enjoy good options for financing, but also the ability to move away from your current choice and onto a different one. Let’s see how leasing can offer you cost savings that other options such as loans do not offer.

Car leasing and purchase

Savings on your Monthly Cash Flow

Leasing agreements calculate monthly payments by taking into account the depreciation and the worth of the car at the end of the term. As a result, at the end of the term, the lessee is left with the option of overcoming the remaining price of the car by either purchasing it or returning the car back to the dealer. Since the monthly payments are normally used for paying off the depreciation of the car and are not intended for purchasing the car at the end of the term, they are much lower compared to loans.

Savings on Initial Fees and Downpayment

Most lease agreements limit the amount of downpayments you can pay on the car, and some dealers may even waive off the downpayment. This drastically reduces the budget you have to set for the car while simultaneously increases your reach to cars and models you may pursue. Furthermore, you will be paying less sales tax which are calculated according to your monthly payments.

Savings on Maintenance Costs

Leasing allows room for minor scratches and wear and tear at the time of returning the car to the dealership. Though lease agreements include wear and tear fees, they vary depending on your agreement. Hence, as long as you do not take the car to off road trips, you do not have to worry about additional costs on wear and tear.

Ability to Walk Away

The biggest advantage with a lease agreement is the ability for you to hand back the car (in reasonable shape) to the dealer and walk away from it at the end of the term. This options comes with a catch: you have to complete the term and pay all the monthly installments. Trying to get out of the lease before the term expires can cost you additional payments.

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