Every time you think about upgrading your vehicle, you probably find yourself asking the question “Are car lease deals better than newly purchased vehicles”?
As technology continues to evolve, car leasing has become increasingly popular among drivers who wish to keep up with the latest trends in the automobile industry. Still depending on individual preferences, more and more people find this type of deal a smarter option as compared to purchasing a new vehicle. Although this is relatively a great option for most drivers, every consumer should go through a few important factors before making any final decision. So, which is better? The answer essentially depends on your individual needs.
When we talk about car leasing, the entire concept can’t do away with the fact that when a person buys something, he must pay for the entire cost. Sounds fair? Of course it is! Before you can even bring home an item from the grocery, you need to pay for it outright. Now the case for leasing is a bit different. If you opt to lease a car, you only have a portion of the car’s value. Technically, this is the part that you get to use every month. In a clearer context, you can consider car leasing as a renting option. Although you don’t get to own the car, you are able to use it for a fixed monthly charge.
Car leasing can be a great option for most people who don’t intend to drive forever. But if you are thinking of driving the latest cars until you grow old without having to pay for the entire value of it, then novated leases might just sound right for you. Novated leasing is an agreement wherein you can obtain the you want through a pre-income approved by your employer. You don’t need to worry about the running costs because all other fees associated with leasing will be covered by your monthly payment.
While car lease deals can allow drivers to regularly upgrade to a newer model, it may not be an option for everyone. There are offers wherein acquisition of the vehicle may require large pay out upfront. Apparently, car leasing may just end up being a costly option for people who dream of driving the latest cars in the market.
In many lease contracts, drivers may have to reconsider the deal especially that there is a mileage restriction. In case you go over the limit, extra charges may be applied which can be really costly on the lessee’s end. In addition, no changes are allowed because you don’t actually own the car. You may be allowed to use it for a monthly lease payment but any type of change is strictly prohibited.
While novated leases can offer you reasonable rate, you just can’t own the car even after the leasing period has been completed. Now if you are thinking of purchasing it at the end of the lease period, then you might want to weigh your options as doing so would cost you more than purchasing a new vehicle. Although car leasing can be restrictive in some aspects, it still has some benefits to offer.