Is leasing a car a waste of money?

Many people will advise you against heading to a place like Haines leasing and tell you that leasing a car is nothing more than a waste of money.

After all, when you lease a car, you do not own it until the lease is up, and even then, you have to pay a fixed amount to get the exact vehicle you have been driving for the last three to five years.

It is easy to see why some people might think that leasing a vehicle is not intelligent, but just like with any other thing in life, we are not all the same. That is to say. There are some cases when leasing a new car would be the smart thing to do and the financially responsible thing to do.

Let us list some of the cases when leasing a car is the right thing to do.

You are a business owner – if you own a company and need a fixed cost for transportation, leasing a fleet of cars can be an easy way to manage your expenses​​.

If you hire a fleet management company, they can also make sure that all of your vehicles are in top shape and maintain and improve driver safety and reduce fuel consumption and costs for you.

Also, some places offer a tax-writeoff for your lease costs if you are self-employed, so look into your local laws and regulations.

You buy a new car every couple of years anyway – as you might already know to lease, a car demands a low initial down payment or no down payment at all. Also, compared to the monthly costs of buying a new vehicle, the lease costs significantly less. So if you are one of the fortunate ones that want and can buy a new car every three to five years, why not take advantage of these benefits? Of course, you would have to take reasonably good care of the leased vehicle and obey the agreed-upon mileage limit, but this is the case where the pros heavily outweigh the cons.

You want to be up to date with the technology – this one stems from the previous argument. Everyday technology is changing and evolving at a pace as we have never seen before. The same is valid for car technology: steering systems, parking sensors, and infotainment systems are better and better every new year. In addition, with each new generation, cars become safer and fuel-efficient. If those things appeal and matter to you, consider leasing a new car every few years to stay up to date with the latest tech without breaking the bank.

You do not want to worry about repairs and maintenance – there is a certain feeling of pride that comes with knowing that you own your car. But being a car owner comes with a lot of worries and expenses, too. If you lease a vehicle, look for a deal where the contract includes maintenance and repairs. But, at the same time, this option might be a bit more costly than if you pay for those things yourself. You might think that is a small price to pay for convenience.

Remember that this option is usually much more expensive than your standard run-of-the-mill car lease.

Things to remember

If one of the options listed above seems appealing to you, here are some things to keep in mind.

Find a dealership that demands a low initial payment or no down payment at all – ideally, you want to find a place with low monthly payments that requires no money upfront.

Do your best to make your lease last just as long as the warranty of the car. Of course, there are some exceptions to this rule, such as notoriously reliable cars and models. But in general, you don’t want to be stuck paying for the repairs on your own. So, in general, leasing a car for three years is the ideal amount of time.

Find a mileage limit that suits your needs. Different dealers have different standards and mileage limits. The difference between ten and fifteen thousand miles annually can make or break a deal. If possible, try to arrange another type of deal that suits your particular needs before signing the lease.

Finally, get as many extras as you can afford. Suppose technology and reliability matter to you and ask for packages that include these options.  Remember, you will not be paying the total price of those additions.  Instead, you will only pay a portion of the cost while you are leasing the car. Take advantage of this as much as you can.

What do you think?

Written by David Thacker

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