- Leasing a used car is a great option if you like to change cars every 2-4 years!
- Don’t lease cars that have poor reliability ratings, especially if they are paired with short-term warranties.
- Find used-car leases on Car Lease Depot, a car lease search engine and marketplace.=
- Check sources such as Kelley Blue Book, Automotive Leasing Guide, and J.D. Power and Associates to find vehicles that have long-term reliability but depreciate quickly in the first three years.
Factors to consider when deciding between car leasing vs buying:
Ownership Car Leasing: Leasing a car is the equivalent of renting it. Once the leasing agreement has ended, the car must be returned unless a decision is made to buy it. Car Buying: The vehicle belongs to the purchaser.
Initial Fees Car Leasing: Initial fees may include the first month’s payment, a security deposit, a down payment, taxes, and registration. Car Buying: Initial fees may include a down payment, taxes, and registration.
* Both car leasing and car buying may include additional fees, depending on the car dealership.
Monthly Payments
Monthly car lease payments are usually lower than car loan payments.
Car Leasing: Payments are usually based on vehicle depreciation, interest, taxes, and other fees. Car Buying: Payments are based on the purchase of the car, interest, finance charges, taxes, and other fees.
Returning the Car Car Leasing: The vehicle can be returned at the end of the lease once all fees have been paid. This allows for the leasing of a new and different car! Car Buying: The vehicle must be sold or traded in order to obtain a new one.
Future Value Car Leasing: The lessor is responsible. Car Buying: The purchaser is responsible.
Wear and Tear Car Leasing: Charges will be assumed if the car is damaged beyond normal wear and tear. Car Buying: Wear and tear will lower the trade-in value of the vehicle.
End of Term Car Leasing: Terms usually last 2-4 years, upon which a choice can be made to begin purchasing the car or simply return it. Car Buying: Terms usually last 4-6 years, in which there are no further car loan payments are not required.
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