You have options when looking for a new car. Depending on your financial situation, lifestyle and type employment, you might not want buy. So what do you do if you want a new car anyway? In this case, you can lease. This allows you to enjoy a new car, without investing a lot of capital that purchasing a new car entails.

Leasing a car, is just like leasing an apartment. You pay for what you use. When you move out of an apartment or turn in your leased car, you leave the deal. If you happen to be a salesman and put a lot of miles on a car each year, leasing might be better for you financially, as long as you take good care of the car. Sometimes you are even eligible for tax advantages when you use a leased car for work.

When you lease a new car and it loses its value during the term of the lease, you won’t be the one taking the loss. The dealer will take that loss. Another advantage includes a lower monthly payment than if you were to buy. You also won’t have to negotiate buying a new car every few years.

Leasing does come with some disadvantages though. When your lease is over, you won’t own the car unless you agree to purchase it at market value. You won’t receive any return on the money you invested like when you buy a new car. You should always make sure to do your homework to verify you are getting a good deal and it is a good financial commitment for you.

Published in by CARCHEX on November 13, 2014