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Leasing continues to be a popular option for many young drivers. If you’re on the fence, start by considering whether the flexibility outweighs its overall high cost.
If you like the sound of these six features, leasing may be for you:
A lease is going to give you the most flexibility with the least hassle. You can change the type and size of your car as your needs change. And the more you lease, the more you save.
Love a manufacturer? You may be able to score a loyalty bonus. Want to change brands? Competitors often offer a conquest bonus to people who switch from a qualified lease. You won’t get nearly as many discounts when you buy.
Vehicle technology is updated each model year. Leasing lets you take advantage of changes in infotainment systems, safety regulations and design.
Think about the rise of bluetooth and Wi-Fi hotspots. Only luxury trims had them in the beginning, but now every car comes equipped.
If you want to be part of the next trend, a lease gives you the opportunity — without needing to buy the most tricked-out trim available.
It’s no secret that leases are cheaper in the short term. Because you’re only paying for a portion of the car’s ownership and depreciation, you’ll pay less than if you’d financed. This is especially true for luxury cars. The high price point combined with high depreciation make leasing a much more appealing option for drivers seeking an expensive ride.
But don’t forget — leasing will always cost more money in the long run. You should compare the costs between leasing and buying to see which option makes more sense for your preferences and lifestyle.
If you own a business that involves a lot of driving, leasing is the way to go. The IRS allows you to deduct both the depreciation and financing costs for each monthly payment. But the tax deductions are limited for luxury brands, so choose the car you work with wisely.
Many manufacturers offer discounted or free maintenance programs, saving you hundreds of dollars over the life of your lease. Maintenance and repairs cost nearly $0.09 per mile on average, according to AAA’s 2019 breakdown of car costs. If your lease includes free maintenance, this adds up to savings of over $1,350 per year.
Even if yours doesn’t, you’ll still save. Cars require more maintenance and repairs as they age. If you’re switching things up every few years, you won’t have to keep up with rising maintenance costs.
Because a lease will only last two to four years, your car will be covered under the manufacturer’s bumper-to-bumper warranty. This means you won’t be on the hook for any mechanical problems that crop up. Even better, you won’t need to worry about things like extended warranties.
Leasing is a great choice for some — but it has its fair share of downsides, too:
Lessees will pay as much as 26% more to lease a vehicle in 2019 than they did in 2016, according to an Edmunds analysis. If your lease is ending this year or early in 2020, consider these options to help save money:
You can browse more options in our guide to the lease-end process.
If the rising costs and other drawbacks don’t deter you, learn more about car leasing to find out how you can make your next lease as painless as possible. Decide to buy instead? Compare your car loan options to find the best rate available to you.
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