Q:

What are the benefits of leasing a car versus buying one?

A:

Quick Answer

Some benefits of leasing a car instead of buying one include lower payments, less money down, and the ability to drive a nicer vehicle, explains Autobytel. A lease is a means of acquiring a car by financing only a portion of its cost for the duration of the lease.

Continue Reading

Full Answer

Because they are based upon a percentage of a car's value, leases offer consumers the opportunity to attain a more expensive vehicle than they otherwise would have been able to drive, notes U.S. News & World Report. By choosing to lease rather than purchase, a driver can enjoy the high-tech features and luxury finishes offered in higher priced vehicles.

Cash flow is another variable that makes leasing advantageous, states U.S. News & World Report. Leases often have lower monthly payments, so consumers with less cash in-hand can benefit under such circumstances. Additionally, leases can require little-to-no down payments.

Leasing can also insulate customers from undue depreciation, claims Edmunds. Unexpected changes in market value or rises in gas prices are less likely to disadvantage the lessee.

Customers concerned about whether to lease or by can consult resources such as the buy/lease calculator on Dinkytown.net and the auto calculator on Bankrate.com, according to Lifehacker.

Learn more about Buying & Selling

Related Questions

Explore