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If you’re in the market for a brand new luxury car, you are probably thinking mostly about the make, model, color, and pricing. But once you’re through with those decisions, the next big thing you want to focus on is if you wish get your first auto lease or buy it with financing. Are there advantages of auto leasing over buying?
Some people think buying makes more sense as it gives them outright ownership of the car. That’s not necessarily always true. There is a huge cost to ownership – just think about the hefty down payment, high-interest rate, higher insurance cost, and all the other hassles you have to deal with when you buy a new car.
The cost of ownership is particularly high if you’re purchasing a luxury car, which is why most people prefer leasing these days. After all, why spend a fortune on ownership when you could just lease a car from Oz Leasing at zero down payment and much more affordable monthly payments?
Sure, you won’t “own” the car in the traditional sense. But what difference does it make if you legally have the car all to yourself through the leasing period?
Moreover, it’s not like you must return the car at the end of your lease agreement. If you wish, you could always purchase the vehicle at a reasonable amount given what you’ve already spent.
Alternatively, you could also lease a newer model of the same car or lease an entirely different model.
So basically, auto leasing makes the perfect choice for you if you:
1. Want to drive high-end luxury cars without having to worry about the hassles of ownership.
2. Want to stay up to date on the latest models without having to pay out thousands every year or so.
Here’s a rundown of some of the best benefits you get by leasing a luxury vehicle from a nationwide company like Oz Leasing to get your first auto lease:
Unlike buying, leasing a car means you only pay a portion of the car’s total value. More specifically, you only pay for the value of the vehicle during the lease period, also known as the depreciation. That automatically makes monthly payments of a lease considerably more affordable than the payments of a car loan.
Let’s illustrate this with an example:
Say, you are leasing a $50,000 car for two years, and its resale value at the end of the lease agreement is $30,000. Therefore, you will only pay the $20,000 difference (known as the depreciation), which is why leasing offers lower monthly payments than car loan or purchases.
If you do want to purchase the car at the end of the lease, you can buy it by paying off the remaining $30,000.
Note that this is a simplification of the process and doesn’t factor in any other expenses the actual lease agreement might include (e.g., a security deposit).
(Pro tip: The higher the resale value of a car, the lower its depreciation and by extension, the lower its monthly lease payment. Click here for more insider tips to get the best car leasing deals).
Buying a car means you have to invest a relatively hefty amount upfront as the down payment. The pricier the car, higher the down payment! But that’s not a worry you have to deal when you lease a vehicle.
Oz Leasing offers zero down payment lease options on all available vehicles on our site. Although, by paying a down payment you will make your monthly payments smaller than they would be on a zero down payment plan.
If you’re like most of us, you probably despise the idea of making car payments and repair at the same time. Unfortunately, that’s something you most likely will have to do at some point if you purchase a car. As every car ages, it suffers wear and tear.
With auto leasing, your brand spanking new car is covered by factory warranty, meaning you don’t have to worry about making extra room for repairs in your budget. Better still, many brands such as BMW even cover additional expenses, such oil changes, for a limited period.
Most car leasing companies, including Oz Leasing, offer automatic built-in GAP coverage. That’s not the kind of advantage you can expect from a car loan or purchase.
GAP coverage, also sometimes referred to as GAP insurance pays for the difference between what you owe on your lease and the current market price of the car in case it is stolen or totaled.
GAP insurance makes a huge difference in your lease, especially so considering that standard auto insurance plans pay only for a car’s net worth at the time of the theft or accident. But when you owe more on your lease than that, GAP insurance will come to the rescue by supplementing the payout you receive from comprehensive or collision coverage.
Not just that, some GAP insurance plans also cover the amount subtracted from the payment of a comprehensive or collision claim.
When you lease a car, you are not taxed on the full value of the vehicle. Instead, you will only be taxed on the total amount you will be spending on the lease term, saving you a bunch of money. (Remember Benefit #1 above?)
Some of the taxes on a standard car lease agreement include:
Oz Leasing brings you the most affordable and convenient way to lease your dream car in less than 10 minutes.
We are not your typical car dealer hell-bent on improving our bottom line at your expense. We are only here to help you find the best car lease deals available in the market.
At Oz Leasing, the whole process is online, which adds to the advantages of auto leasing with us. You can browse thousands of vehicles from all major manufacturers right from the comfort of your couch. Choose your preferred trim, color, mileage options, all the way down to the down payment and sign the contract digitally when you’re ready.
Your dream car will be right on your doorstep after a pre-specified period – usually within 2-3 business days. Simple as that!
Dial (954) 504-9391 to talk to an Oz Leasing lease expert today.