Are you thinking about buying your next car? The thrill and excitement of selecting your next vehicle are a pleasure in life that everyone loves. What if there was a way to get more value for your money when you choose your car? Using a lease agreement to finance your next vehicle may be an attractive option when you consider the advantages it has to offer.
The Benefits of a Lease Agreement
#1 More Car for Your Money
A traditional hire purchase agreement where you intend on keeping the vehicle at the end of the term, requires you finance the entire cost of the vehicle. With a lease, you are only financing the depreciation of the car over the lease term. This nuance makes a massive difference on the size of the payment. Some lease options require minimal down payments and still have a payment that is lower than a hire purchase agreement.
This finance model means that you can drive more car for your money. It is possible to upgrade your model or choose a different luxury manufacturer. You dream car could be within your budget if you choose the leasing option.
#2 Very Low Running Expense
With a lease agreement, you have to stick within a specified mileage target for the year. The most common mileage limits are between 12,000 and 15,000 miles. You are charged a penalty fee if you exceed the mileage agreement. However, if you stick within distance range, you will have all your servicing and wear and tear repairs are included. The only thing you have to worry about is fuel and tires. This kind of convenience makes a lease worthwhile to anyone concerned about maintaining a stable monthly cash flow, without the concern of unexpected vehicle expenses popping up.
#3 A New Car with Every Lease
When your lease term comes to an end, you will not have any equity in the vehicle. You must return the car to the leasing agent and then negotiate new terms for your next lease. While you may not have a car to trade-in, it does not matter as your new lease will still be within your old budget. This financial wizardry means that you get a new car every three to five years while paying the same monthly installment.
#4 No Maintenance
Skip the maintenance cycle. Most cars hit their warranty period at around 50,000 miles. After this point, severe maintenance expenses start to appear in the monthly running cost of your vehicle. Modern cars feature sensors and other complex mechanical systems such as turbochargers or superchargers. If these components are damaged and require replacement, the costs can be enormous to get the car running properly again. With a new lease agreement, you circumvent the maintenance cycle and don’t have to worry about your car costing you more money as time goes on.
#5 Who Needs Ownership Anyway?
Ownership is over-rated. If you can get your head around the fact that a car is not an asset, rather it is a liability, then you can see that a lease makes the most financially sound method of financing your next vehicle. Why own a depreciating asset, when you can gain all of the benefits, without the hassle and extra expense associated with ownership?
A lease on your next car just makes financial sense. Be prudent with your choice and consider what is best for your monthly cash flow position. Be careful not to overextend yourself with your monthly lease payment. Work with professionals when you decide to take on the lease agreement for your new car. Speak to a professional leasing agent such as www.worldwideautomobile.com and run the numbers on your next car to see what kind of deal you can make.
Customizing leased cars are not much of a lease option unless you plan on purchasing them at end of lease.