Leasing Pros and Cons
As drivers in Manhattan, the Bronx, and Queens start on their car buying journeys, they may be torn over financing. Is leasing the better option or is buying? The answer to this question depends entirely on your lifestyle and budget.
At MINI of Manhattan, we know that leasing your next car can have many benefits and even a few drawbacks. And to help you understand all of them, we’ve put together this helpful list of leasing pros and cons.
1. Your payments will be cheaper.
As you know, when you buy a car outright, you’re paying the full MSRP in addition to a sizeable down payment and sales tax. If you don’t have enough money up front, it may be difficult to get approved for financing. And those monthly payments are sure to be more burdensome.
However, lease payments are calculated differently. Instead of paying the whole MSRP, you’re just paying a chunk of it. More specifically, you’re paying the value of the car’s depreciation during your lease term. Naturally, the payments are going to be a lot smaller, as are your sales tax and down payment (if you even have to pay those at all).
2. Your vehicle will always be up-to-date.
Cars are evolving at a rapid pace. Every year, they come equipped with exciting new entertainment features, structural advancements, and cutting-edge safety features. And when you lease, you’ll always have access to these more recent features.
Think about it. The regular term of a lease is three years. That’s about the same amount of time it might take for a piece of technology to become outdated. By the time this happens, you’ll be ready to trade in for something new.
3. Returning your vehicle is easy.
On that note, coming to the end of your lease is no hassle at all. If you really like your car, you can choose to keep it. In this case, your payments will be adjusted to fit the full price.
However, if you want something new, simply trade in your lease vehicle. You may have to refinance, but you can drive home in a brand-new car almost as soon as you trade in the old one.
1. You never truly own your car.
Buying your car can definitely cost a lot more money up front. But one of the major benefits is that, eventually, you’ll have no more payments. If you only lease, you’ll be in a constant cycle of payments. Granted, they’ll be lower, but they might grow tiresome after a while.
2. There’s no customization.
Since you don’t actually own your car, you’ll never be able to customize it. While this might not bother everyone, an upgrade can really enhance your driving experience. And if you’re driving a MINI vehicle, there’s going to be plenty of upgrades available.
3. You’ll have some restrictions.
Unfortunately, you’ll only be able to put so many miles on your lease. However, the dealership doesn’t assign your limit arbitrarily. Before signing, you’ll have to decide how many miles you plan on driving over the course of your lease.
You’ll also be expected to return your car in roughly the same condition that you drove it off the lot. Any extra wear or damage is going to incur penalties.
As a responsible car owner, you may not think these two stipulations would be a problem, but life is also full of surprises. Sometimes the extra miles or wear are out of your control.
Want to Learn More About Leasing?
Though it may not be for everybody, leasing is the best option for some. Any driver in Manhattan, the Bronx, or Queens should visit the financial team at MINI of Manhattan to learn more about the process. Contact us today for more information.