Making the decision to buy or lease a new vehicle can be a bit overwhelming. This is often because of the negative word of mouth that exists about leasing vehicles. This negative talk, however, mostly comes from people who don’t lease vehicles—those who do lease are usually quite happy with their leases and continue to lease vehicles in the future. There are many good reasons to lease vehicles—reasonable payments, newer vehicles for less, and the ability to continually upgrade your vehicle, as well as service plans—but what about those continually prevailing car lease myths that continue to give it a bad name?
Car Lease Myth 1: Leasing Is More Expensive Than Buying
As a rule, this is only true if you plan to hold on to your vehicle for longer than the length of your lease—which kind of defeats the purpose of the lease in the first place. And lease payments are usually lower than purchasing payments for the same vehicle. Leases are also open to negotiation, just like buying is, and they’re subject to similar deals and sales. There are usually tax breaks, too—check your state’s tax code to see what breaks might be available to you.
Car Lease Myth 2: Leasing Might Be Cheaper Upfront, But You Pay More When You Return The Vehicle
There are mileage limits on leased vehicles, and going over those mileage limits does subject you to fees—but only if you go over those limits. And if you think it’s likely you’ll exceed the mileage limits on your vehicle, you can get higher limits written in your lease contract for a bit more per month, which will still save you money in the long run. Also, keep this in mind: a car you’ve purchased is worth less on return with high mileage, too. High mileage fees aren’t unique to leased vehicles.
Car Lease Myth 3: You Can’t Get Out Of A Lease If You Need To
Breaking a lease can be difficult, certainly, but it’s not impossible. Trading a lease to another party is your best, most inexpensive option, and there are now services exist to help you do just that. There are fees involved in the process but it is much less expensive than paying off the difference between your remaining lease value and the auction value of the vehicle—or dealing with the credit-score-crushing power of having a defaulted loan on your record. With a little time and effort, you can find someone who is looking for a short-term vehicle just like yours—leaving you open to moving on to your next car (or no car at all).
Leasing isn’t the right choice for everyone—particularly not for people looking for a long-term investment vehicle, or a vehicle for work or long distance travel—but for many, leasing just might be a more cost-effective solution, no matter what the myths might say. Before you believe the hype, do some research and see if leasing a car is the right choice for you.
Tim is automotive blogger who loves to write on various topics related to automobile industry.Recently he got a chance to write and review Automotive Lease Packaging from 1Alp.