What Are the Benefits of Leasing a Car?

Have you been pondering the benefits of leasing vs. buying a car? Maybe you’ve heard about some of the pros of leasing a car, but you’re still trying to get a sense of whether this path is right for you. Many drivers find that leasing is more affordable, and since you’ll trade up every few years, leasing is a great way to stay up to date with the latest features—but this is only part of the story!

What are the benefits of leasing a car? Our finance department wants our Pasadena area customers to make informed decisions. So, we’ve put together the following lists of pros and cons of leasing a car.

Pros and Cons of Leasing a Car

When most Thousand Oaks drivers try to list the benefits of leasing vs. buying a car, they probably focus on costs. That’s important, and our list of pros and cons of leasing a car certainly addresses cost. Generally, leasing saves you money up front, while buying may save you in the long run. However, it’s also true that those who lease new vehicles don’t have to worry about rising repair costs that accrue as a vehicle ages.

But what are the benefits of leasing a car beyond cost? The pros of leasing a car also have to do with convenience and flexibility, as you can see below:

Pros of Leasing a Car

• Lower Payments: Lower monthly payments is probably the biggest advantage that people enjoy when they choose to lease.
• Less Sales Tax: In most states, leasing a vehicle drastically lowers sales tax. That’s because the tax is calculated on the price charged for two to three years of use, and not the vehicle’s full purchase price.
• Easy Returns: Transitioning to your next car is easy. Just turn your car in at the end of the lease, pick out a new vehicle, and drive home that same day.
• Great Coverage: Leased automobiles are almost always under warranty. As long as you stay under the mileage limit and follow all service guidelines, you’re covered.
• Options: Because you’ll be in a brand-new vehicle every couple of years, you’ll always have the latest feature options at your disposal.

Cons of Leasing a Car

• Mileage Restrictions: Buying may be right for you if you plan on putting a lot of miles on your vehicle, especially if you do a lot of over-the-road traveling outside the Pasadena area.
• Lack of Ownership: When you buy your vehicle, you own it. That means you have equity, and you may be able to sell the vehicle at a later date. Those who lease are essentially renting, and they don’t accrue equity.
• Restrictions on Customization: Since you don’t own the car, you’re not free to customize it.
• Financing Options: Financing is generally more accessible to those with less-than-stellar credit, especially since used car leasing is uncommon.
• More Cost Over Time: Though buying a new car is more expensive in the initial period, your costs will reduce significantly when you pay off your loan. With total ownership, the vehicle becomes less expensive to own the longer you have it—but you’ll still need to set money aside for unexpected repairs.

Let Our Finance Department Walk You Through Your Options

Hopefully, this examination of the benefits of leasing vs. buying a car has helped you to decide which is right for you. If you need more information, our finance department would be happy to walk you through your options. While you’re here, feel free to check out our articles on how to lease a luxury car and whether leasing a car builds credit. Our auto group has many locations that are easy to reach from anywhere near Pasadena or Westlake Village, so drop by or contact us today!