A large portion of Americans are now opting to lease a car instead of buying. More than a quarter of the new cars acquired by the dealers and car companies were leased during the first quarter of 2014. The car leasing trends are changing drastically, luxury cars are no longer the only type of cars that are being leased today; more and more people are leasing compact cars, vans and other types of cars.
The major reason for this shift is the lower monthly expense. Leasing a car is much cheaper than buying since you don’t have to take loans, pay instalments or worry about depreciation. Let us now compare the various aspects of leasing and renting:
Car rental is available at various standalone car rental agencies like Wise Car Hirewhereas, car lease is offered by the car dealerships. Dealers offering car lease also sell cars, so you have both the options open.
Leasing is mostly a long term commitment, whereas, car rentals are comparatively short termcommitments. Based on the duration of owning the cars, the agreements and policies would also differ. In case of car lease, you pay monthly payments, whereas in case of car rental you pay one-time fee at the beginning or at the end of the rental contract.
If you lease a car, you will have two options in hand – you can either choose to give up the lease at the end of the lease period or opt to buy the car. However, this is never possible if you rent a car. You will have to return the car once the rental period ends.
In case of car rental, the additional insurance is optional; whereas in case of car leasing you must have full coverage. This must also include the comprehensive and collision benefits in order to protect the leased car from potential damages.
The next obvious question would be – how to lease a car? Since leasing is much different from renting, you need to prepare ahead. Here is how you can successfully lease a car:
- Select the right lease tenure: The ideal lease period is 3 years since the manufacturer’s warranty is valid during this period. You can extend the lease period, but that means you will invest in a car that is not your own.
- Look for manufacturer lease deals, since car manufacturers offer car leases on discounted rates. So you can save a lot of money, however you must check if the rate is inclusive of tax or not.
- Stick to the type of car that is suitable for your needs. Never get persuaded for upgrades. Upgrading means increase in expense, so never upgrade until and unless it is necessary.
- Compare quotes from various dealers to get the best rates.
- Find good dealers to have a good car leasing experience.
- Finally as always, you must check the contract and agreement thoroughly before signing.
A car lease deal can make or break you plans, so make sure you make an informed decision. The choices are many, but it is necessary to make the right choice.