Leasing

Leasing

As I approach my final semester of college, I have been thinking about some of the first tasks that await me in the “real world.” One of those tasks is getting a new vehicle.

I have three options when it comes to buying a vehicle: buying new, find a used vehicle, or leasing a new vehicle. I took the subject to Twitter, asking my friends about the three options. One response I received from a family friend was this: “Isn’t [a leased car] like a rental? At the end… what do you have?” Well, there are three options you have at the end of a lease. Check out our blog post that discusses those options. But before you consider what to do at the end of the lease, let’s discuss some advantages for signing a lease to begin with.

One great benefit of leasing a new vehicle is warranty. Typically, lease agreements go from 24-36 months, and during that time the vehicle is still under the manufacturer’s warranty. So, if anything happens to the vehicle, you shouldn’t have to pay out-of-pocket for maintenance.

Another advantage to leasing is that the monthly payments are lower than the payments to buy the same vehicle new. In addition, the sales tax on the monthly payments is based on the lease payment as opposed to the value of the entire vehicle.

Dealerships are also seeking relationships with young buyers. Because of my age, I haven’t been able to build a credit score like some buyers. If I wanted to lease a vehicle, I can have someone (such as my parents) co-sign the lease. Co-signing is a good way for me, along with other young buyers, to build credit while having the ability to lease the vehicle I want. Co-signing does not hurt the credit of the co-signer if a payment isn’t made; only the lessee’s credit is affected. Some dealerships have first-time buy programs to help young buyers as well.

Check out our blog for more information on leasing. One post is dedicated to leasing definitions. Also, go to our main website and explore the types of vehicles you can lease from us here are Jenkins and Wynne.