What are the benefits of leasing a car over buying one?
In: Economics
It’s the same as with your phone contract.
You always get a new shiny one after 2 years and they are usually carefree, for one, because they are new and because the leasing firm handles everything else.
There are different forms of leasing tho and that has a big impact on the leasing rate and risk attached.
There aren’t, don’t do it. Only benefit is if you are well off and just enjoy swapping cars out a lot and don’t want to bother selling.
As you have probably realised it is an expensive way to buy a car, often more than buying it outright, even a new car outright.
I asked someone about it before when they bought a brand new car on lease and they gave the following reasoning:
* It is really convenient; often lots/all of the extras are included, like servicing or even road tax (something you have to pay on cars in the UK). Also some lease plans come with insurance included. So you don’t have to worry about getting it all separately.
* At the end of the lease, say 3 years, you give the car back and get *another brand new car.* Normally you would need to go through the process of selling/part exchanging your car.
So bottom line, it is more convenient *for some people.* However, if your priority is saving money, leasing is almost always as expensive/more expensive than buying a car, and MUCH more expensive than buying used.
None. Buy a used car… It will save you so much money. Also buying used doesn’t mean your buying junk. You can buy used cars from a dealership or private party with less than 10,000 miles easily, and save thousands of dollars.
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