Is Auto Leasing Right for You? 3 Questions to Ask Yourself

Posted by Fair Lease on November 5th, 2017

Auto leasing provides a distinct alternative to buying that not everyone is familiar with. When the circumstances are right, taking this path can provide lessees with the car of their dreams and savings along the miles. Making sure the option is the right one personally does take a little research.

Asking and answering these questions can help with the decision-making process:

• How many miles are driven annually? – One of the only caveats with auto leasing is found in the mileage cap. While many leasing firms cap annual mileage allowances at 12,000, some of the better ones build 15,000 miles into their leasing contracts. If average mileage goes well over the cap, leasing may not be the right choice. If it falls within the bounds, leasing can add up to significant long-term savings.

• Do you have the necessary money down for the desired vehicle? – If the answer is no and a compromise in the make, model or quality of vehicle will be required on a new car lot, leasing could offer the perfect option. Auto leasing companies that work directly with lessees are more likely to offer contracts that require no down payment. With a first month’s lease payment, a lessee can drive away with the desired model.

• Is there a compelling reason to buy? – Buying does result in a title at the end of the loan term, but that is also generally when warranties expire and people are ready to trade in for something else. Leasing enables people to gain the benefits of ownership without the potential pitfalls, such as taking on the financial burden associated with depreciation. Unless there is a compelling reason to buy, leasing makes sound financial sense.

Auto leasing provides a viable alternative to buying that can put lessees in new cars for less. When there is a desire to drive new while saving money on down payments, depreciation and financing costs, leasing is the perfect solution.

About Author

FairLease was established in 1995 to provide auto leasing to credit union members.  Quickly it became apparent that FairLease offered a leasing product that was unmatched in the DFW market, so it is now available to anyone in Texas.  FairLease is DFW's premier new and pre-owned leasing company offering lease plans for almost any make and model, and each lease is tailored to fit YOUR needs- not the dealership's bottom line.