Lease Occasions? The best cars in one place | Occasion Lease Totaal (2024)

FAQs

Is there ever a good reason to lease a car? ›

Lower down payments, warranties and free routine maintenance are among the benefits lease customers typically get when leasing a car.

Fewer costly repairs

Generally, leased cars are newer and in better condition. Cars in their prime years are less likely to need costly repairs. Typically, leased cars are covered by the manufacturer's warranty and include free oil changes and other, covered repairs.

Leasing a vehicle

Your monthly payments may be lower than buying, but the payments are going towards depreciation of the vehicle during the lease term plus rental charges. You may be responsible for early termination charges if you end the lease early. These fees can be very expensive.

Lower monthly payments

One of the greatest advantages of leasing a car is typically lower monthly payments than if you were obtaining financing to purchase the car. When you finance a vehicle purchase, you pay the entire purchase price of a vehicle over the life of the financing plus interest.

Strict rules: Because you don't own the vehicle, lease agreements typically have strict rules to prevent excessive mileage or wear and tear. You also can't make any modifications to the vehicle during your lease term. If you breach the contract, you could be on the hook for hefty fees.

Key Takeaways. Leasing is a less expensive, shorter-term method for (temporarily) acquiring a vehicle, whereas buying a car is more costly but gives you better value for your money in the long run.

With a short-term lease, you drive the car while it depreciates rapidly. And you pay for it. Monthly payments on short-term leases are typically much higher than those on long-term leases because they account for the significant loss in value that occurs during the car's first year or two.

In 2024, whether to buy or lease a car depends on your individual needs and lifestyle. With manufacturers pushing more attractive lease deals, leasing may become a more appealing option for many. Leasing is a great way to avoid the worst effects of today's high interest rates.

A fixed monthly rental with optional insurance & maintenance. Access to a wide range of manufacturers and models. All lease deals include road tax and manufacturer warranty. Choose a length of contract and annual mileage to suit you.

Consider This Before Making a Lease Down Payment

Cap cost reductions are nonrefundable, so if you overpay upfront, you're not getting any of that money back if something happens to the car. Not to mention, since you don't own it, any money from insurance coverage goes directly to the lessor, not to you.

Why are car leases so expensive now? ›

Why are car leases so expensive now? The cost of cars has significantly increased, as has the cost of leases. Plus, many current lease contracts aren't as favorable toward drivers as they once were – a result of increased demand for new cars.

In the short term, it's generally cheaper to lease a car due to less stringent down payment requirements, lower monthly payments and minimal maintenance and repair costs. In the long run, however, you may be able to save more by buying a car because you'll retain all the equity you build as you pay down the loan.

Deciding between leasing and buying a car will come down to your lifestyle, driving needs, and financial situation. Leasing can be attractive if you're looking for lower monthly costs, want a new car with new car technology every few years, and don't want to worry about certain tasks, such as selling your car.

If your goal is to have low monthly payments and drive a new vehicle every few years with little hassle, then leasing may be worth the additional cost. Be sure, however, that you can live with all the limitations on mileage, wear and tear, and the like.

You may deduct the cost of monthly lease payments by using the actual expense deduction on your federal tax returns. The specific amount of the lease payment you can deduct depends on how much you drive the car exclusively for business.

While you don't build equity with lease payments, you still get access to a car for a monthly fee. That means leasing a car isn't a waste of money in the same way that renting a home isn't a waste of money. Just like renting a home instead of owning one, leasing a car usually has fewer costs than owning it.

"Remember, leasing or financing a car will not help you build wealth," Ramsey wrote. "It's much easier to save around $500 a month (the average car payment) for 10 months and buy a used car with no strings attached. Do you really want to sign up for a payment plan and pay thousands of extra dollars for several years?"

In other words, a vehicle lease agreement can help you build credit in the same way an auto loan can. As long as your dealer or leasing company reports to all three credit bureaus—Experian, TransUnion and Equifax—and all your payments are made on time, an auto lease can certainly help to build your credit history.

The Wealthiest Buyers Have Cash to Spend

“But, now, when you look at the actual percentage of our customers and how many lease, finance, or pay cash, it comes down to 20% leasing, 20% financing, and the rest (60%) making a cash purchase.”