There's no better feeling than that of driving a brand new car. Looking at that sparkling new beauty instills a great sense of pride and joy. So why not get a new car every couple of years or so? The answer for most of us is money or lack thereof. What many people don't know is that leasing enables people to drive new cars every couple of years and not pay much more than usual.
Leasing is an option that's becoming increasingly popular. Close to 6 million people chose to lease cars last year. That's just about 27 percent of all new car drivers. Leasing has a lot to offer when looking at the short-term. Low up-front fees and monthly payments make leasing an attractive option to those who have little interest in owning a car outright. Another plus to leasing is that you can get a better car for the same price you would pay if you were buying. For example, monthly payments on a leased Toyota Camry would be comparable to those of a Celica bought outright. Thus, even though the cars are about $6,000 apart in price range, payments are comparable.
There are two sides to every story though, and the same is true with leasing. Leasing is not meant for drivers who tend to put a lot of mileage on cars. There are strict mileage limits, and the penalties are costly for exceeding them. Another downside is early lease termination. Again, the severe penalties make this a very unattractive thing to do. Leasing prevents an owner from ever getting the real value out of a car. Car owners usually get at least five or six years of ownership after the car is paid off. Leasing doesn't allow for that.
Leasing has pros and cons and isn't meant for everyone. In some situations, however, it makes much more sense to lease rather than buy a car. The hard part is figuring out if leasing is best for you. By following the guidelines of a lease, it is possible to be in a new car every couple of years. Do your homework and know what you're getting into, and that new car could be yours.