Everyone knows that driving a luxury car is a one-of-a-kind experience. Luxury cars feature a stunning exterior and a comfortable interior that is adorned in top-of-the-line materials. While almost everyone loves luxury vehicles, many people choose to purchase a vehicle that is a little more budget-friendly. So, is there a way to drive a luxury car without having to pay a high price tag? Fortunately, there is a way that no matter what your budget is, you can still drive a luxury car. Keep reading to find out how you may benefit from automotive leasing.
Buying vs Leasing: What is the Difference?
When purchasing a car, many people choose to finance the vehicle and make monthly payments on it until the loan is completely paid back. Because of this, many people incorrectly use the words “buying” and “leasing” interchangeably. In reality, however, these two words have quite different meanings.
When you purchase a car, you are the sole owner of the car. Even if you have financed the vehicle through a lending company, you are still considered the owner of the vehicle while you are paying off the loan.
When leasing a vehicle, you are basically renting the vehicle for an extended period of time. When leasing a vehicle, you will be required to sign a lease agreement. The agreement will detail how long you are allowed to keep the vehicle – usually between one and three years. Once you have reached the end of the time period, you will return the vehicle to the dealer.
Advantages of Leasing a Vehicle
Both owning and leasing have their own set of advantages. While leasing will not be the right choice for everyone, it does have a few attributes that many consumers find attractive. Some of the benefits of leasing a vehicle include:
- Low Upfront Costs. When you purchase a car, you are usually required to make a down payment that can be around 10% of the purchasing price. When leasing, however, there is no down payment to make. So, you can essentially drive off a car lot in your new car with a minimal amount of money in your pocket.
- Low Monthly Payment. Because you are not required to pay for the full price of the vehicle, leasing monthly payments can be as much as 30% cheaper than the monthly payments that you would be required to pay if you were buying the vehicle.
- Hassle-Free Trade-Ins. If you are financing a vehicle and decide you want a different car, you will either have to trade it in or try to sell it. That can be a bit difficult if you have negative equity in the vehicle, or if it is not paid off yet. With a lease, however, you know that you will be able to turn it in and walk away in a few years, which makes finding a new vehicle much easier.
Is it Better to Buy or Lease a Luxury Car?
There are many benefits of buying and leasing a luxury car. However, if you are looking for a way to drive a high-end vehicle without having to pay a lot of upfront costs, then leasing may be the right choice for you. If you have any questions about buying or leasing a luxury car, please feel free to contact us today.