Why are More People Leasing than Buying Cars?

Posted by Tom Clark on September 12th, 2019

Car leasing is one viable option for driving a car. With this practice, you do not own the vehicle you are driving; you are renting it for a specific period, usually 36 or 48 months. Leasing is most suitable for people who do not have the money to pay for a brand new car. Sites such as https://www.genusleasing.com offer lease deals that you can choose from that will fit your budget. 

Over the past years, more and more people have preferred leasing than buying cars. Car dealerships that offer car leases abound, and they offer their customers irresistible deals that are hard to resist. Here are some reasons why more and more are leaning to leasing. 

They can drive luxury cars

Luxury cars are expensive, and unless you take out a huge loan, you can't own one. Leasing, on the other hand, allows you to drive your dream luxury car without having to pay a fortune for it. The only downside is that you only get to drive for a few years until the lease term ends. You can still continue driving your preferred luxury car by continuing the lease. With a loan, the borrower pays more than what the car is worth, with the vehicle depreciating at a quick pace. 

They don't have to take out a loan

Buying a new car requires a 20% down payment, which can be a significant burden to a household's finances. In order to finance a brand new car, you have to take out a loan with high interest. Monthly lease payments are less than financing fees when buying a brand-new car. 

They can drive different cars every few years

People who fancy driving different cars every few years benefit most from leasing. Owning a car does not allow a person to drive different ones unless they sell their old one and buy a new one. With leasing, a different car every 3 or 4 years is possible.

Monthly payments are budget friendly

Monthly lease payments are small. People can choose lease deals that will fit their monthly budget. Although over time the cost of leasing a car will add up to the cost of buying one, those who do not have the money to pay for a new car upfront still prefer leasing even if they know this fact. 

People stay within their budget

One of the main reasons why people prefer leasing over buying is because they are considering their budget. When they see that they cannot afford to take out a loan to buy a new car, they turn to the alternative. This way, their budget does not suffer from expensive monthly payments for a new car purchase. 

In the coming years, we will continue to see a rise in the number of people favouring car leasing over buying. Cars depreciate quickly, so owning one for a decade or so will not give them a fair price should they decide to sell it. With leasing, they have more options, both for the price and the type of car.