5 Misconceptions You Need to Know About Leasing a Car
Is leasing a car still a good idea in 2022?
When it comes to car buying, there are a lot of options to choose from. You can buy a new or used car, and you can also lease one.
Leasing a car has become increasingly popular in recent years, but it’s not always the best option for everyone.
Here are 5 things you need to know before signing on the dotted line.
1. Leasing typically costs more in the long run
In general, leasing is more expensive because you are essentially renting the car for a set period of time. At the end of your lease, you will have to either purchase the car or return it.
However, there are many reasons why you’d still want to consider leasing.
A car is the second-largest purchase you’ll make after a home; and unlike buying a home, a car depreciates in value the second you drive it off the lot.
Informed car buyers are very practical people. If they want something new but know the model will depreciate heavily after purchase-they’ll lease it! And if someone has an expensive rare car that’s expected to go up in value? Well then buy my vintage muscle car please :)
And don’t forget that leasing a car can also include a tax write-off for your job!
2. You’re responsible for wear and tear
When you lease a car, you are responsible for any damage that occurs outside of normal wear. However, there’s another hidden caveat to this as well, being that you don’t have to think about how to get rid of your car at the end of your lease.
If you buy a car privately, then lingering in the back of your mind are thoughts on what you’ll eventually do with it when you no longer need it. But when you lease a car, all of those concerns go out the window.
Additionally, you can opt-in for excess wear and tear features which will cut down on your overall bill.
3. Leasing can be restrictive
Leasing contracts typically come with a lot of restrictions, such as mileage and how often the car can be serviced. If you exceed the mileage limit or fail to get your car serviced on time, you could be slapped with hefty fines.
Unfortunately, this has no benefits or caveats. Just kidding. It does. Mileage limitations allow you to save money on your lease, meaning if you don’t think you’ll be driving around a lot or have access to public transportation then adjust that in the contract.
In fact, if you come in undermileaged you can get positive equity on your leased car. This is why it’s important for mileage to be completely customizable to the driver’s needs.
Whatever you do just be sure to read the fine print and understand all of the restrictions before signing a lease agreement.
4. You can usually trade in your leased car for a new one
You’re not locked into your lease.
At any time you could come back and trade-in your lease for another vehicle or just return it entirely.
If you get tired of your leased car most leasing companies allow you to trade it in for a new one after a certain number of years. This can be a great way to get a new car without having to go through the hassle of selling your old one.
Just remember that you’ll likely have to pay a trade-in fee, which can range from several hundred to several thousand dollars.
5. Try before you buy
Think of leasing as getting to try before you buy. If you’re not sure if you want to be stuck with a car for several years, leasing can be a great way to test drive different models and see which one you like best.
We like to call this lease-to-own and it makes sense as, after all, car buying is the second-largest purchase after a home. Just in case you forgot :)
Just make sure you’re aware of the restrictions that come with leasing, such as mileage limitations.
Final Thoughts
So, is leasing a car still a good idea in 2022?
Absolutely! It’s a great way to get behind the wheel of a new car without shelling out the big bucks, and it can be especially beneficial if you like to switch things up every few years.
Leasing offers more flexibility than buying, and with the right plan in place, you can save money on your monthly payments. If you’re thinking about leasing a car, be sure to do your research and consult with an experienced automotive specialist.
At the end of the day, leasing is a great option for many drivers — just make sure you know what you’re getting into before signing on the dotted line. Thanks for reading!
