Leasing a car can be a great or terrible idea depending on your personal finances. Click here to learn how to figure out if it's the right time to lease a car.
According to experts, the average monthly lease payment is $487. Depending on the vehicle you purchase, leasing might be your best option to keep your car payment low.
Having a great credit score and the initial down payment are the first steps to lease a car. You may meet these initial requirements, but is leasing a car the best call?
Here are the 3 situations when you should consider a car leasing instead of buying a vehicle.
1. You Plan to Change Your Car Every Several Years
When you plan to change your vehicle every several years, getting a car leasing is the best option. You won't have to start looking for guides to selling a car in Illinois or other places. A car lease allows you to return your car and get a new one when your lease term ends.
You may think you're better off buying the vehicle instead of leasing it because you can sell it later on. However, there's a chance you'll end up with the short end of the bargain. Remember your car will depreciate due to the wear and tear so you won't be able to get the same amount you paid for it.
2. You Use Your Car for Your Job or Business
When you use a vehicle for your job or business, your car will rack up miles. This mileage will result in depreciation. However, you don't need to worry about this depreciation when leasing a car because you'll return it at the end of the lease term.
If you lease your car, you'll need to stick to driving a certain amount of miles every year or your payment may increase. The typical mileage limit on car leases ranges from 10,000 to 15,000 miles, but it depends on the terms of the lease.
3. You Don't Want to Worry About Car Maintenance
Maintenance is one of the biggest headaches of car ownership. When you choose to lease a new vehicle, you'll receive all the warranties that come with a new car.
You won't need to worry about car maintenance for 36 months or more depending on the car you lease. The only thing you need to do is take your vehicle to the auto dealer for routine maintenance and inspection.
Is It Time to Lease a Car?
Before choosing to lease a car, it's important to take a look at your current financial situation. Do you have the initial down payment? Can you afford your lease payment?
These questions are a starting point to figure out if it's time for a car lease. You should also budget and plan before leasing a new or used vehicle. You may think putting your car purchase off until you save enough to pay it in full is the best approach.
However, you should consider leasing a car instead if you're planning to change your vehicle or use it for your job. When you use your vehicle for business purposes, you may also be eligible for additional tax deductions. It doesn't matter if you're buying a new or used car, you should consider leasing a car depending on your financial and job situation.
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