After owning my current Ford Explorer for much longer than I expected, and it just being a tick under the eleven year national average age of cars currently on the road, I am definitely going to lease my next car. By no means would I consider myself vain when it comes to cars, probably just self-conscious I know (my friend who has a similar year F-150 says my car is like a Rolls-Royce compared to his), but let’s put it this way, I would get embarrassed to pull up to the valet line now. So basically when my wife and I drive we use her new Ford Edge. I have been technically without a car payment for years now, but with the amount of repairs that needed to be made over the course of its many years on the road, I’m pretty sure it’s been a ten year lease…
Lower Monthly Payment
With a lease there are no depreciation concerns, so you only pay the residual value on the vehicle, which is the difference between the full price and what it is expected to be worth at the end of the lease. Since you’re paying for a small percentage of the car’s price with a lease, compared to financing the entire price, your monthly payment would be substantially lower with similar terms.
No Down Payment
Since the reason to lease is to free up your cash flow, there is no reason to put down a down payment on a lease. With most dealers now doing the “sign and drive” promotions now, you can roll in your security deposit/dealer fees into your monthly lease payment and pay nothing up front.
Avoid Repair Bills
Going above the normal maintenance of oil changes, shocks, a few brake changes, new tires, and entire exhaust system newly replaced, anything can go wrong, Belle Tire knows me by name now, the worst being having the entire engine rebuilt! With most warranties and leases lasting three years, a car would be covered the duration of the lease.
I understand that leasing may not be for everyone. Whether the need to own is for the wear and tear freedom as a business owner, or cannot stay within mileage limits, or just have the patience and goal to wait out a five year loan to not have a car payment, then financing may the way to go. Typically the longer you own your car the more you save in buying, but there is no desire to keep a car for the better part of a decade and want a new car every two to three years with a low monthly payment, then I say lease, lease, lease.