When looking for a new vehicle, there are many factors to consider, such as the intended use, budget, financing options, vehicle safety features, reliability, comfort, and maintenance support. Unfortunately, most car buyers focus only on the cost of acquisition which can be misleading when it becomes the most critical factor. For example, when deciding on the cost of acquisition alone, leasing a vehicle becomes the most suitable choice because it has a lower up-front acquisition cost than buying a new vehicle.
Why Consider Leasing a New Vehicle
Compared to owning a vehicle, leasing is cheaper, and it is a lot easier to switch to a new car every few years. In addition, vehicle owners do not have to worry about repairs and maintenance after the extended warranty has expired because they do not own the vehicle by then. However, leasing a new vehicle is not the right choice for everyone.
Pro: Less Expensive Than Buying or Renting a Car
When leasing a vehicle, the monthly payments are generally less than the cost of buying or renting one. For example, leasing a vehicle from a Ram dealership in Sterling Heights or the Jeep dealership in Clinton is less expensive than purchasing a vehicle outright because customers do not need to pay for the vehicle's full Manufacturer's Suggested Retail Price (MSRP). Conversely, customers will pay for the MSRP out of their pocket with or without vehicle financing when buying a vehicle. In addition, leasing a vehicle is much cheaper than renting a car from a car rental company at the airport, which charges significantly higher costs than leasing a vehicle.
Pro: Easy to Get a New Vehicle Every Few Years
One of the main appeals of leasing a vehicle is the convenience of driving a new car every couple of years without spending a lot of money on a down payment. Some local car distributors even allow current customers to lease a more recent vehicle model without any down payment. Customers are free from the hassle of selling or trading in their current car for a newer model. They can drive in with their vehicle and drive out with the newer model on lease. Most local vehicle distributors carry the latest models in their showroom for display, and customers are welcome to sit in and touch the model on-site. For the latest selection of vehicle models available for lease, customers can visit their nearest local vehicle distributor, the Ram dealership in Clinton, for more information.
Con: Vehicle Mileage Cap
When deciding whether to lease a vehicle or not, it is also essential to consider the costs associated with driving beyond the specified total mileage on the lease agreement. Exceeding the mileage limit will cost customers some money at the end of the lease term. However, this limitation is usually explained and discussed before signing the lease agreement, so it should not come as a nasty surprise for customers. Customers looking for a new vehicle are encouraged to work with a trusted local vehicle distributor such as the Dodge dealer in Utica to avoid buyer's remorse.
Con: Vehicle Modification is Prohibited
This may not be a con to all customers because most people do not wish to customize their new vehicle. However, for car enthusiasts who enjoy customizing their vehicle to their specifications, the cost of customizing a leased car will show up at the end of the lease term. This means a higher monthly lease payment and a lower trade-in value in many cases. However, be prepared that some vehicle distributors outright prohibit any vehicle modifications when leasing a vehicle because the customers do not own the vehicle. When in doubt, consult with a trusted local vehicle distributor in the area, such as the Dodge dealership in Clinton.
Other Factors to Consider in a New Vehicle
Deciding between leasing or buying is just one of the essential factors to consider when looking for a new vehicle. As a driver, there are many other equally important things to consider before purchasing a new vehicle.
Cost of Ownership
Customers who are keen on finding out the true cost of a vehicle will want to perform a cost analysis that includes the following financial factors: depreciation, maintenance, repairs, insurance, financial incentives, and many factors beyond the cost of the vehicle itself. Generally, the cost of maintaining a vehicle increases as it ages. Fortunately, there are ways to reduce ongoing costs and keep the vehicle running problem-free longer by performing regular maintenance services from the certified local vehicle distributor.
Reliability
Another essential factor when choosing a new vehicle is reliability. The reliability of a vehicle affects consumer satisfaction because unreliable vehicles could leave customers with an unexpectedly large repair bill. Customers can buy extended warranties on the vehicle that protects them from unexpectedly high repair costs for additional assurance. Extended warranties are usually much cheaper than the repair bill.
Safety Ratings
One of the most important things to consider when buying a new vehicle is safety. While all vehicles are manufactured with driver and passengers' safety in mind, some have better safety ratings than others. The Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) provides new vehicles' crash test safety ratings. Considering these numbers when choosing a new vehicle can help customers make an informed decision when selecting a new vehicle and model.
When In Doubt Take a Test Drive
A test drive will help customers evaluate a vehicle's comfort and ride quality. It will also let them see how the vehicle responds to their driving style in unfamiliar environments. For instance, customers who live in a city and drive on the highway might want to take a test drive in an area where they would not usually travel. Take time and evaluate how well the vehicle accelerates and handles road conditions. Also, this is an excellent opportunity to test the accelerator and brake pedal while driving to immediately know if the vehicle will be a safe ride to operate regularly.