Car leasing is a long-term car rental proposal made by companies. The period of a car lease can extend from one year to up to five years. If you plan to lease a car, you will have to consider several factors, such as the depreciation value of the vehicle, the number of miles it will run, and its cost of overhaul at the end of the lease period. So, it is vital to understand when is car leasing a good idea so that you do not make a bad deal when planning to lease one for yourself.

When is car leasing a good idea?
Perhaps the only real disadvantage of leasing a car would be that you do not get any ownership rights of the asset. But then, there are ample situations when leasing can turn out to be the better option. Read on to know more.

• You want a low monthly payment
  Monthly costs are much lower when you opt for a lease instead of buying a new car. As compared to a loan that you might have to take to finance a new car, lease payments are considerably lower. As a result, you can widen your choices and even pick for a vehicle that is a higher model than what you would ordinarily buy.

• You want a new car every few years
  Leasing gives you the liberty to drive a new car model whenever you like without actually having to own any car. Once your lease is over, you can easily switch to a new car on a new lease. Getting rid of a vehicle that you own in your name is not that easy because you will have to either dump it altogether or find a new buyer for it.

• You don’t want high maintenance costs
  Most new cars come with a warranty for a particular period, which is enough to cover any significant repairs. Further, lease agreements usually include clauses that cover accidental or unforeseen damages to the vehicle. This is not the same for an owned car.

• You don’t want to worry about resale
  Reselling a used car is a process full of hassles. If you drive a vehicle under a lease, all you have to do is return the car to the provider to get rid of it. At most, leases include a clause where you are required to pay a fee at the end of the lease period, but that should not be a cause of worry for you.

The above points aptly answer the question of when is car leasing a good idea. They also highlight the benefits of leasing a car instead of buying a brand new one. Do keep them in mind and make the smart choice based on your financials and preferences.