Owning a car can be a satisfying experience. After all, it only proves that you have managed your finances in order, allowing you some extra cash for such a major purchase; but how do you go about getting your dream car when it is way over your budget? Easy! You go for lease deals.
The Appeal of Lease Deals
In the past, car lease deals were thought of only in relation to luxury cars; some top brands have become synonymous with leasing. One of the reasons why most people tend to go for lease deals rather than buy a new car is the fact that monthly lease payments tend to be more affordable than loan payments. This allows a greater number of people access to high-end brands and models. With lease terms currently going for as long as 42 months, consumers get to their dream car at a lower rate.
Currently, however, even car models and brands are becoming a prime choice for car leasing. This is because, aside from the lower monthly payment, lease deals allow consumers to change cars when a new model arrives without having to worry about selling the old one.
Now, since most consumers in Los Angeles would see new cars as the best lease deals to make the most of their monthly payment, you do not have to worry too much about maintenance costs. In some cases, the lessor would be the one to shoulder the cost for maintenance and repairs.
Leasing vs. Buying: The Math
If you are still not sure whether to buy or take advantage of lease deals, you might want to consider the math that goes behind it. For one, a new car depreciates in value over time. This means that the car that you bought for $26,000 will, most probably, be worth half that price in about two to three years, barring the introduction of a newer variant. In case a new variant gets introduced, your car could rapidly depreciate.
The scenario gets a bit more complicated if you bought a car using a car loan. If your loan term is at three years, by the time you have finished making the payment, your car would already be less than what you have paid for it. Keep in mind that, during the time you are making your payments, the car is technically owned by the bank and not by you.
The New Math of Car Leasing,.wsj.com
The Real Math of Lease vs Buy,leaseguide.com