Sausalito, CA (PRWEB) July 09, 2013 -- Cartelligent has released its analysis of the buy vs. lease decision many car buyers face. The service, based in Sausalito, California and with branches in East Bay, Silicon Valley and Orange County helps thousands of people purchase cars each year across all manufacturers. Its team of professional car buyers has put together a guide to help consumers understand the pros and cons of leasing a new car.
Once the decision has been made that the time is right to get a new car, the next question that should arise is whether buying or leasing makes more sense financially. This decision will determine which makes and models are within a given budget and will help narrow the choices to the best options for those dollars.
In recent years, many manufacturers have incentivized leases more than purchases – making leasing an increasingly attractive option. The percentage of leased cars rose from around 10% in 2009 to over 20% in 2012.
The most obvious benefit to leasing is that consumers can get more car for a lower payment compared with buying and many times a lower overall cost. Not only is the monthly payment lower than what it would be to buy the same vehicle, but, with upkeep and depreciation, the overall expense of leasing multiple cars over a given number of years can be similar to that of buying and holding a single vehicle for the same time period.
The car buying experts at Cartelligent have compiled a list of questions consumers can ask themselves in order to determine if leasing may be a good option.
Can they benefit from consistently driving a newer model?
There are a number of advantages to driving a newer car including:
• Safety – Car-makers are constantly adding new features to their vehicles. Driving a recent model ensures that the latest safety innovations are installed. Lane Tracking Assistance, Blind Spot Monitoring Systems, and Pre-Collision Braking are just some of the features that have become available in recent years. Having a new car ensures that consumers have the best safety devices available today – can anyone imagine still driving a car without an air bag?
• Fuel Economy – Each model year brings an increase in fuel efficiency that can save drivers money at the pump. If they have a longer than average commute or do occasional road trips, these savings can add up quickly. Couple the money saved at the pump with the lower monthly payments of a lease, and the total cost of ownership is often lower than that of a purchase.
• Maintenance – A newer car is always under warranty so consumers never have to worry about unexpected repair costs or the potential safety concerns of wear and tear on the vehicle. An unforeseen repair bill can derail even the best personal budget – leasing gives people consistency in their expenses that they can count on.
• Technology – If having the latest in-vehicle technology is appealing, the newest gadgets available in recent models can represent an added benefit to upgrading vehicles every few years. Additionally, avoiding distracted driving citations by using the car's Bluetooth enabled phone system is not only safer – it’s the law.
How many miles do they drive in an average year?
The average commuter here in California drives between 12-15,000 miles per year. Many folks drive even less. There are a number of lease options that can be customized customize to match theirdriving habits. Also, if they know up front that they will be driving more miles, but still feel they can benefit from leasing, they may choose to purchase additional miles and build them into their monthly payment so that they avoid surprises down the road.
How much money are they willing to put down on the vehicle?
Leases typically require less money to initiate than a comparable purchase. Consumers also pay only the sales tax on the portion of the vehicle they are leasing which can further decrease their costs. Additionally, many banks have stricter regulations when financing a vehicle over $30,000, making leasing a viable option for those needing more flexibility.
Will pets or children be riding in the vehicle?
Wear and tear charges can be a potential hazard at lease-end if they are not considered in advance. However, leasing may still be the best family option, especially considering the additional safety of driving a newer car. Choosing the right after-market policies can help minimize or eliminate lease-end penalties for consumers who choose to lease their next family vehicle.
Do they have the option to expense a lease?
Leasing a car may offer a number of tax advantages if the vehicle will be used for business purposes. Leased vehicles can typically be expensed at close or equal to the monthly payment and are not subject to the notoriously low government threshold for “luxury cars” which can lower the amount that can be expensed on purchased vehicles. In addition, they might not have to maintain that depreciation schedule any longer.
Ultimately, the decision to lease or buy comes down to the buyer’s own situation and comfort level with the pros and cons of each option. If they do decide that leasing is the right decision, they should be aware that, left unassisted, the process of negotiating more than just a fixed price can be a little more daunting than a standard purchase. They may wish to speak to a leasing expert or take the time to educate themselves on how the leasing process works.
We welcome inquiries about these tips or about car buying in general. To set up an interview with one of our experts, please contact Jessica Carstens at 415-339-4562 or email jcarstens(at)cartelligent(dot)com.
About Cartelligent: For over thirteen years, Cartelligent has connected car buyers with the new car they want, at the right price. Thousands of satisfied clients have saved time and money while avoiding the hassle of the traditional dealer experience by working with Cartelligent to help them enjoy the car buying experience like never before.
Jessica Carstens, 415.339.4562, [email protected]
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