Should Couples Lease or Buy a New Car?

Sunday, June 03, 2018

Leasing of vehicles is popular, and both demand and supply have been growing steadily for years, and for good reason. Lessees appreciate the benefits, as low monthly costs in a limited and manageable time frame has its conveniences, and if you are new to this, this guide to leasing should be a good start. So, should a couple lease or buy a new car? The following are some of the factors to consider before making the decision.

The Maintenance Costs

Regardless of whether a vehicle is bought or leased, it goes without saying that maintenance costs will be there and for the latter; they will be independent upon the leasing contract. In many lease contracts, the costs for regular service and comprehensive insurance are already included. However, fuel and related daily expenses are incurred differently, based on the make, and how the vehicle is used. For couples looking to lease a car, this should be calculated along with the overall monthly budget, while factoring in the duration in which they intend to use it. A bit of research should be done before deciding on the right model to lease.

Freeing Up Money

Although the money to buy a new car may be available, it can be at times better if it just remains in a savings account, or used for more pressing matters and emergencies. Leasing gives couples the ability to do this, as well as allowing them to regularly replace cars, according to their tastes and preferences, so long as they can afford the lease payments.

The Good Credit Question

When entering into a lease agreement, a deposit is usually made, and varies depending on the car model. If a couple cannot or does not want to raise the sum, leasing is normally possible without a down payment. However, sufficient creditworthiness in many cases must be proven. For a contract without a down payment, it is also worth noting that the monthly instalments will likely be much higher. The total amount may ultimately remain the same, with the costs only spread in a different way.

What’s Affordable?

The amount of monthly payments in the case of car leasing is influenced by several factors. For example, if a down payment is not made, the fees usually increase. The overall value of the vehicle that they intend to lease also determines this. Understandably, those who choose the less expensive and smaller-sized cars, usually stand to pay significantly lower figures than clients who go for a luxury-class SUV, for example.

The Convenience Factor

For couples that need to use a personal car to go to work every day, leasing due to unavoidable circumstances is reasonable. Events such as a car accident or loss due to theft, and related issues can leave a couple with few options, especially if they do not have the cash at hand to immediately buy a replacement. In such cases, leasing will be a cheaper alternative to buying a new one. If, however, buying a used car is a preference, this guide offers reliable information.

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