5 Benefits of Leasing a Car
Not sure whether you should buy a car or lease one? Here, we outline the 5 key benefits of leasing a car as opposed to financing one.
Lower Monthly Payments
Compared to financing, when you lease a vehicle you can enjoy lower monthly payments. Lease agreements also come with low or no down payment options. This allows you to drive around a new car for less money. When you lease a car, you also have guaranteed trade value, so you don’t need to worry about losing money on your car. Also, if you are concerned about the cost of purchasing/leasing a car, what if you had the possibility to make a profit at the time the lease is up?
No Long-Term Commitment
Buying a vehicle is a pretty big commitment. If you don’t like it, you’re basically stuck with the vehicle until it’s paid off or you sell it (which is usually at a significant loss). If you’re not ready to make a long-term commitment to a vehicle, leasing is a good option for you. Unlike buying a vehicle, most lease terms require you to only commit to a vehicle for three to five years. This gives you the ability to adapt to a lifestyle change with ease. Once the term is over, you can either trade it in for a new vehicle or buy it. Also, if you are trading in your leased car for the newest model, you get the joy of driving a new car every few years with the newest in safety features and technology! The option is yours.
Lease Agreements have Greatly Improved
In the past, lease agreements didn’t offer decent coverage options outside of the standard warranty. In the event that you were to get into an accident or returned the car with some signs of wear and tear, you would have had to pay for it out of pocket. Fortunately, that has all changed. Today, Honda offers a number of additional coverage options for lease agreements. The Lease Guard option, for instance, will cover any wear and tear up to $1,000 per single event and up to $7,500 of coverage for stains, dents, and dings over the term. You can also get total loss protection through the Honda Plus Gap Protection plan that is designed to cover any shortfall between your insurance settlement and what is owed on your lease or loan.
Lower Repair Costs
Speaking of repair costs, leasing vehicles can cost you less in repairs over time. Since the car will always be new and you’ll be driving it during its most trouble-free years, it will usually cost less to repair than a vehicle you hold onto for years.
Better Vehicle for the Price
You might not be able to afford a $70,000 vehicle that is financed but you may be able to afford it if it’s leased. In most cases, you can drive a higher-priced vehicle than you would otherwise be able to afford at full price.
Having a lease is more affordable in the short-term but it’s always wise to weigh the pros and cons before making a decision. Come visit us at Ottawa Honda and we’ll walk you through all the options available to you so that you can get into a new car faster.