When selecting a new car, you can buy in full, finance it, or get a lease. Before making your decision, learning about leases might make your choice easier.
Why You Should Lease Luxury Cars
Leasing your car instead of purchasing it opens many more options to you. The following benefits are just some of the reasons that choosing to lease luxury cars is the best choice to make.
When it comes to the amount of money you’ll spend on your car, leasing clearly is the best option. When you finance a car, your monthly payments are based on the total price of the car and the duration of your term, whereas the cost of leasing a car is based solely on your use of the car. This means you pay for the use of the car and not the car itself. When leasing, you could end up spending a few hundred dollars less per month than you would spend financing an identical car.
Perhaps you like a particular dealer and would like to try a more expensive model. If you choose to lease, you might be able to afford the model you want instead of the entry-level model. More specifically, if you’ve been looking to finance a BMW 5-series, you just might be able to lease a BMW 7-series for the same monthly price or lower depending on the terms of your contract.
When you buy a car, you have to pay the full price for each individual a feature you want to have installed in your car. When leasing your car, however, the price of the features gets added to the overall price of the car, but you receive those features for only a few dollars per month more. Because you are not expected to pay the full value of the car, the cost of adding features gets spread much more thoroughly. This enables you to get whatever luxury car you could want with all of the features you want while still paying significantly less than financing an identical model with just the standard equipment. What better way is there to get you in that premium package S-Class Mercedes-Benz for less than it costs to finance a current Jaguar XJ?
With the reduction in price for adding features, you no longer have to worry about which features you need and which ones you can ignore. For just a few dollars more, you can have all of the features you want. This is great news to anyone who wants a luxury car that offers a more fuel-efficient engine configuration that may add a few thousand dollars to the MSRP value of that car. You’ll be able to save money on your car and at the pump without any sacrifice.
Leasing is a great option for someone who enjoys having the newest models each time they arrive. If you want a newer model car, most dealerships will allow you to bring the old one in and trade it for a newer model at no additional cost outside of a small termination fee to end your current contract and draft a new one. Because you weren’t paying to buy the first car, you won’t be expected to pay the remainder of the sticker price, either. Your new contract could potentially increase the monthly rate slightly, but that will be determined by the price of the new model in comparison with the old model and your contract details.
Your swap does not have to be for a newer version of your car, either. Most dealerships will allow you to swap your current lease car for most of the other cars they are carrying at the time. This way, you can keep swapping lease cars until you find one that you want to keep. This will also allow you much more time with a car than a test drive to get a real sense of the car you’re driving. You can then hold onto that car until either your contract ends or you see another new car in the lot that you’d like to use.
Each car you lease will be brand new, so it will still have the factory’s full-service warranty attached to it. This serves to bring some peace of mind to the owners of otherwise expensive cars as maintenance on luxury vehicles can be quite expensive, even if it’s just a regularly-scheduled servicing. With a new car, you should not have to worry about big mechanical problems, but they can happen every once and a while, and a full warranty can make sure that you will have no problem getting it repaired. Most warranties will even provide you with a service car while yours is in the shop!
There are other benefits attached to leasing a car. If you happen to own a small business or be self-employed, you will have the ability to write the car off on your taxes each year if you use your lease car for your business. Not only can you get a luxury sedan for a low monthly rate, but you can save extra money on your taxes with it, too!
Suppose you adore the car you’ve been leasing and your contract ends; what can you do with it? You will normally have three options: you can leave the car at the dealership, you can try to swap it in for a newer model, or you can offer to buy the car by paying the remaining amount of the sticker price. If you opt to buy it, most places will allow you to enter into a financing plan so you do not need to pay all the money at once. This way, you can keep leasing your luxury cars until you find one that you really want to keep, or you could keep leasing and swapping indefinitely. It's all up to you!