Whether you need to get to work, take your kids to school, or just want the luxury of a car when going out on the weekends, leasing a car is an affordable way to drive. There are many people who are skeptical about leasing a car because they think it’s too good to be true or they don’t understand how it works. However, driving a leased car is a great option for many people.
The truth is that leasing is one of the most popular methods for financing new cars in North America. So if you’re ready for your own set of wheels and won’t need it for more than three years, leasing is probably the best choice. Keep reading to learn more about leasing a car Calgary residents love.
What is Leasing a Car?
Leasing is an alternative to purchasing your car with cash. You’re essentially renting the car for a set amount of time and can return it whenever you like, just like a cell phone. You don’t actually own the car at the end of the lease, but you’ll have the option to turn it in early or pay a buyout fee if you want to keep it.
Leasing isn’t for everyone, but it does have its benefits. For example, you have less risk with depreciation and lower monthly payments. You’re also not tied down to one car like you would be if you bought it with cash.
Why Lease a Car?
When leasing a car, you’ll have lower payments than if you bought the car with cash. Plus, if you turn the car in at the end of the lease, you don’t have to worry about a drop in value like you would if you owned the car and it was worth less than you paid.
You can also tailor your lease to suit your needs. For example, if you want a new car every three years, you can do a three-year lease. This way, you don’t have to worry about the car getting too old and having to pay more to keep it on the road.
Who Can Lease a Car?
Almost anyone can lease a car, but there are a few things to keep in mind before signing the lease. When leasing a car in Calgary, you’ll have a lower down payment than if you were to purchase the car with cash. So, you’ll need to make sure that you can cover the monthly payments. You’ll also have lower credit scores if you decide to lease instead of buying the car with cash.
The Process of Vehicle Leasing in Calgary
The first thing you’ll need to do is decide on a car. There are plenty of websites that allow you to search for vehicles by lease or by lease and buy. You’ll see two columns – lease and buy. If you want to lease, click on that column. You can narrow down the search by colour, model, and features like Bluetooth or leather seats. You’ll also be asked for your zip code and the number of passengers using the car (if it’s a family car).
Once you find the car you want, you can click on the “lease” button to get more information about the lease. You’ll be asked to fill out a few forms and provide some basic information like your credit score. You’ll also have to pay a security deposit, which is usually about $1,000. Once everything is approved, you’ll sign a lease agreement, and your car will be delivered to your home.
Is Leasing a Car Worth It?
Depending on the situation, leasing a car may or may not be worth it. Leasing is great when you know you don’t want to keep the car for more than three years. This is because the car will be worth less than what you paid for it at the end of the lease. Let’s say you pay $20,000 for a car and you want a three-year lease.
At the end of the lease, the car is worth $10,000. So you can either pay the difference or turn the car in and walk away from the lease. If you own the car, you have to pay for repairs, and insurance, and possibly have to pay for the car at the end of the loan.
Advantages of Leasing a Car
You Don’t Have to Worry About Your Car Loosing Value
When you buy a car, its value will depreciate each year. This means that in a few years, your car will be worth much less than what you paid for it. However, when you lease a car, you don’t have to worry about this.
The Leasing Company Takes Care of All Repairs
When you own a car, you have to take care of any repairs and maintenance that are needed. However, when you lease a car, the leasing company takes care of any and all repairs. It is an option that you can include in the used car lease.
You Can Get a New Car Every Few Years
If you lease a car for three years, you get the option to either turn it in or pay a buyout fee to keep it. Many leasing companies will let you get a new car each year if you want.
Affordable Monthly Payments
When you buy a vehicle with cash, you pay the full price of the car upfront. However, when you decide to finance or lease a car, you have to pay a security deposit. This amount is usually about two to three months of lease payments.
Disadvantages of Vehicle Lease
You Don’t Own the Car at the End of the Lease
Let’s say you want to buy the car after your lease ends. You can try to buy it, but the leasing company might not accept your offer. With Lease Axel, we always provide you with the option lease to own your car.
You Have Low Credit Scores
If you decide to lease or finance a car instead of buying it, your credit scores will take a hit.
Tips for Finding the Right Car Deals
There are plenty of websites that let you search for car leases. However, you can also visit your local car dealership and ask about their lease program.
Get Your Credit Report
Before you start searching for a lease, make sure you get your credit report to see what your credit score is. This way, you’ll know what you can expect to pay on your lease.
Choose Between a Short-Term and Long-Term Lease
If you want a new vehicle every few years, you can choose a short-term lease. This way, you can get a new car every two to four years.
Consider Leasing a Truck or SUV
If you drive a lot of passengers or have a lot of stuff, you might want to consider leasing a larger car, such as a truck or SUV. This way, you don’t have to worry about overfilling your vehicle.
Car leasing can be a great way to get a new vehicle every few years in Calgary, AB. You just have to be careful that you don’t get in over your head with payments or lease options. If you want to lease a car, make sure you shop around, get your credit report, and read the fine print on the lease agreement.