3 Reasons to Lease a Car

People who want all the benefits of driving a new car without the potential pitfalls are likely to find leasing makes more sense than buying. This alternative to an outright purchase or installment loan provides the important perks of ownership without the financial setbacks that technically arise from making a purchase.

For those who aren’t sure if a car lease is right for them, these three reasons can combine to make a rather compelling case:

• A purchase isn’t technically a long-term investment – Many people view the purchase of an automobile as being on par with an investment in a home or other value-appreciating item. This is simply not the case. Automobiles lose a part of their "value" the second they are removed from the lot and continue to decrease in value as time passes. People with new car loans, in fact, are likely to find themselves upside down with more money shelled out over the life of the loan than could ever be recovered through a sale.
• The upfront costs tend to be a lot less – While it’s true the upfront costs will vary based on a person’s situation, some auto lease companies are able to provide credit-qualified customers with no down payment options. All that may be required to drive away in a new car is the first month’s lease payment.
• The long-term costs are significantly lower –When a car lease is finalized people are likely to save a significant amount on monthly payments. The average savings is about $150 each month. This amount, however, isn’t where savings end. By driving a new car, people who lease are able to avoid repair costs and other expenses. While they’ll have to pay for routine maintenance and fuel costs, the savings over the miles can be significant when the cost of repairs is factored in.

For people who drive an average amount of miles each year, and perhaps a little more than average, an auto lease just makes sense. This option provides all the benefits of ownership without the potential downfalls.

a href=http://www.fairlease.org/about-usFairLease is a credit union owned company, FairLease follows a credit union philosophy of serving people, meeting their needs and providing the best product at a reasonable price. In essence, we want "