In the market for a new vehicle? Sure, you can always buy, but if you’re curious about the ins and outs of leasing a new car, then read on for five signs that leasing could be the right choice for you.
1. You like driving a new vehicle every 3 years.
Some people love driving a brand-new set of wheels, or maybe you’re addicted to that new-car scent. Or it could be that a sleek sedan appeals to you now, but you know that in a few years, you’ll need more space, perhaps even an SUV. Whatever the reason you’re wondering if you should lease or buy, if you prefer driving something new, leasing could be the best fit.
2. You’re a low-mileage driver.
If you typically log between 10,000 and 15,000 miles per year, a leased vehicle could be the ideal choice for you. Just be aware that if you exceed the mileage listed in your contract, you could be charged a hefty fine at the end of your term. If you anticipate putting a lot of miles on your car, but you still want to lease, ask about pre-purchasing extra miles at the time of your contract negotiations.
3. You have good credit and are financially stable.
If you’re in a comfortable financial position, leasing is a good option. Once you sign that contract and drive your new vehicle off the lot, you are legally obligated to fulfill the financial terms associated with the vehicle. So if you decide you want to terminate your lease before it’s over, or you’re having a hard time making the payments, you could face large penalties. When leasing, make sure you have the necessary funds and be prepared to keep your vehicle until the end of your contract.
4. You take good care of your vehicle.
Just like renting a house or an apartment, you’ll be required to put down a security deposit on your leased vehicle to ensure you’ll pay for damages when you turn it in at the end of your term. If you have kids who are prone to spilling ice cream or you have trouble keeping your car scratch-free, you may want to consider purchasing a vehicle instead.
5. You want a more expensive car.
Often, when you lease a car instead of purchasing it, you don't have to put down as much cash up front. You'll also find that your lease payments are much lower than if you had purchased the car and gotten a loan for the same time period.
When it comes to leasing or buying a car, you have lots of options. But rest assured that when you choose auto insurance with Farm Bureau, you are choosing a company that offers a range of options to help keep you safe, both on the road and off. Talk to your Farm Bureau agent to learn more.