The benefits of leasing a car are as follows -
Lower monthly payments - The cost of leasing a car is significantly lower as compared to that for buying a new one. It does not involve any upfront sales tax and has a negligible down payment, if at all. However, certain extra charges may come up if you terminate a lease early, have any unrepaired damage or exceed the mileage beyond the allowable limit.
Fewer repair expenses - If you get covered by a manufacturer warranty during your lease term, you don’t usually have to worry about repair expenses. However, the costs for the general maintenance and upkeep of the car do not get eliminated. The amount for auto insurance also needs to be paid by you.
Up to date vehicle - Another advantage of leasing a car is that you can do it every few years. That also means you can enjoy the benefit of driving one with the latest technology, comfort and safety features.
Hassle-free return - Leasing a vehicle does away with the hassles involved in selling a car and getting a fair trade-in value. Once your lease term expires, you can return it or choose to initiate a new lease for a different vehicle. Depending on the manufacturer and the terms or conditions involved, you may also get the opportunity to buy it at the end of the lease term for a pre-set price.
No loan approval required - If you have a low credit score
, getting loans for a new car can become difficult. Leasing companies, however, aren’t as strict as lenders because they can easily take the vehicle back on the non-payment of instalments or on violating any lease term. Therefore, opting for leasing reduces the stress of loan approvals or high-interest rates.