Economics of Car Lease: Is Car Leasing or Renting Cheaper In The Long Run
Because of the popular demand for cars, more and more people especially in Chicago prefer to lease cars instead of buying them or finance them thru banks. As cars nowadays are becoming necessity, truly car leasing is the best option. But, do you really save when you lease? Would that make it cheaper instead of having your own car?
Depreciation
Cars depreciate its value fast. You can check local magazines (www.automobilemag.com) and also website about cars at Edmund (www.edmunds.com). The value of the car decreases after two-three years. If you are going to lease a car, you would have to choose the recommended three years lease terms to maximize the car’s worth. That can make leasing cheaper as you are using the latest model and can change it to a new one before it depreciates its value.
Damages and Repairs
Cars have their warranties. Under leasing terms, you will get all the benefits of having a good maintenance for the car as it is still from the leasing firm. Imagine how much you can save for repairing a car and keep it in a good condition. This is one of the features of leasing a car which may be the same when buying but for leasing, whether it may used or brand new the maintenance will still be charged from the leasing firm.
Do the Math
For you to verify if leasing will be a lot cheaper, you may do some calculations for the next three years including all the cost related to the car. Include all the possible charges or may ask some quotations for it. Compare it with buying a car and check if it will be a lot of savings. You will definitely see there the difference of buying and leasing a car. This is most applicable to those who wanted to change their cars every two to three years, someone who is typically in a vacation or just wanted to appear good for their wealthy clients and not be left behind.
It depends to the situation if leasing a car will be cheaper. If you have the same predictive lifestyle and would not want to end the lease early, you can certainly save money instead of paying it outright. Having a car in Chicago is very important and will be very useful, so if you are planning to use your savings account and would like to maximize it to be used for other investments while having a car, leasing is just right for you.
