Everything You Need To Know About Leasing A Car
Everything You Need To Know About Leasing A Car
Posted on June 14, 2022
When it comes to car leasing, there are a lot of things to consider. This guide will help you understand the basics of car leasing so you can make an informed decision.
Can you lease a used car?
Yes, you can lease a used car, although it's not as common as leasing a new car. You'll need to find a used car dealership that offers leasing, as not all dealerships do. Luckily you've come to the right place, because at Carget, we offer leasing and financing!
How does leasing work?
When you lease a vehicle, the dealership is essentially renting it to you for a certain length of time. That's usually 36 months, and once your lease period ends, you have the option of returning the vehicle to the dealer or purchasing it at a predetermined amount that is defined in the lease contract that you sign.
Financing a car means you own it after the loan is paid off.
How does leasing compare to buying a car?
The difference is that with a leased car, you agree to make payments over a specified period of time. Once that timeline is up, you will have to return the car to the dealership or purchase it outright at an agreed upon price.
Buying a car outright or financing it means you will make payments on the total cost, and you will own the car once the load is paid off.
Is leasing a good idea?
This depends on your situation. Some people prefer to buy their cars outright because they like having complete control over their vehicle (no limits on mileage, being able to modify your car, etc). Others find that leasing offers more flexibility and saves certain hassles in the long run. Whether or not leasing is right for you will largely depend on your individual financial situation and needs.
What are the Advantages of Car Leasing?
Lower Payments
Leasing a car can be beneficial if you're concerned about the monthly costs of getting a vehicle. Generally, the monthly payment is considerably less than it would be for a car loan.
A New Car Every Few Years
If you are someone who changes your needs or tastes over time, leasing may be a good option for you. When your lease is up, you can easily return the car and get another one.
No Resale, Trade-In, or Private Sale hassles
If you don't want to go through the effort of selling your used car to a dealership or negotiating with a private buyer, a lease may be right for you. With a lease, you simply return the car at the end of your term. The only "extras" you have to consider is paying any end-of-lease fees, including those for abnormal wear or additional mileage on the vehicle. These are all defined in your lease agreement, so there should be no surprises.
Tax Deductions for Business
If you use your car for business purposes, a lease will often allow you to use your vehicle as a tax write-off. You can deduct both the depreciation and the financing costs that are part of each monthly payment.
What are the Disadvantages of Car Leasing?
Some common drawbacks of leasing include the lack of any ownership stake in the vehicle after the lease expires. Think of it like renting an apartment - you make regular payments, but have no say in whether or not you keep the property once your lease is up. This also means that you can't sell the vehicle or trade it in.
This also applies to the duration of your ownership, as leasing often places restrictions on mileage and modifications to a car. It's also worth mentioning that if you were to return the vehicle earlier than the lease term, you may face a penalty.
Conclusion
When deciding between leasing or buying a car, lifestyle, driving needs, and financial situation will all play a role. Leasing can be an attractive option if you're looking for lower monthly costs, changing a car every few years, and not worrying about other tasks such as selling your car. Buying a car means you own equity in it and may have better long-term financial prospects.
Leasing on luxury pre-owned vehicles
We're Saskatoon's largest luxury used car dealer, and we're one of the few used car dealerships in the province offering leasing! Our finance team is ready to answer all your questions and provide you with a consultation on the automotive finance & leasing solutions that best fit your needs.
Contact us today for more info, or fill out our secure online application to get started!