Benefits of Leasing Cars with Video Transription
Interested in learning more about the benefits of leasing a car vs buying? You’ve come to the right place! Watch this short video below as Ronnie Haskins discusses some of the most significant benefits of leasing a vehicle and why it makes sense for many in the market for a new car.
Video Transcription
Today, we’re doing a video on leasing and it’s not going to be for everybody.
But I get a lot of questions every day about, “Should I lease a car, should I not lease a car? What are the benefits? How many miles do I get to drive?” All kinds of questions, I’m going to answer all starting right now.
Welcome back, we are talking about leasing today. Should you, or should you not, and what are the benefits to leasing a car? But before we get started, click the subscribe button and ring the bell, that way you won’t miss a video when we go live or we drop a new video.
Okay. First, let’s talk about what a lease actually is, and so here’s the definition.
It is basically the use of a motor vehicle for a fixed period of time, at an agreed amount of money. That’s it.
You’re basically agreeing to lease the vehicle for usually two, three, or four years, pay a set amount of money per month.
At the end of the lease, you turn the car back in, or you can buy it for a fixed amount. Okay, one of the first major benefits I’d like to talk about is the ability to have a newer car every three years. The ability to have a brand new vehicle every three years, which at first, people are like, “Not sure I really need a new car with three years.”
But there’s another thing and way I look at it is, imagine having a vehicle that’s always under warranty every three years. So you’re never out of a new car warranty, just imagine, right?
You lease a car and the only thing you’re really responsible for, for three years, is changing the oil and doing the minor service that the car needs during the time that you have it. And guys with these new vehicles now, they only need oil changes every 7,500 to 10,000 miles, depending on which car you lease. So when you think about those savings, it’s amazing, right?
You’re not worried about tires. You’re not worried about brakes. You’re not worried about major fixes on vehicles, because anytime you have a problem, you can take it to the manufacturer and have it repaired.
In my world and in my mind, after doing this 23 years, I look at that as transferring my risk to the manufacturer. That way, yes, I always have a payment, but I always have a car that’s under warranty. So when you have minimum repairs to do on your vehicle, you can do a lot more things with your money.
Typically, also a big benefit to leasing is that the payments are less than they would be if you have a long-term financial loan from a bank or credit union. And so if you take the lower payment and you invest the difference every month, you can save much more money with your planner or in your bank on a month-to-month basis.
Also, when you compound that with, you’re not going to have to worry about doing transmissions and all different types of air conditioning fixes, or things that cost a lot of money and usually are brought on by emergency, then you start looking at the big picture and your financial obligation picture is very, very steady.
So if you like those benefits, I’m with you, that’s where I’m at, as well. But keep in mind, these things have to be set up properly. If you’re going to lease a car, you can’t just do it without looking at all the pros and the cons.
One of the things that comes up quite often, is how many miles a year do you get to drive? Now you can drive in a leased vehicle, up to 30,000 miles a year, but it has to be set up properly in the beginning, otherwise, it becomes a major problem on the backend.
So once you have your lease set up properly and you have the right mileage in the lease, make sure you can drive within those limits and make sure you read your paperwork before you leave the dealership. A lot of times you’re at the dealership, people don’t read their paperwork and you should make sure that the right boxes are checked in your lease before you leave the dealership.
Another major benefit to leasing is that things change. I see it quite often, families sign a 72-month loan on a sports car, two years later, they ended up having a child, they need to get rid of that sports car and get something else. And it becomes difficult to do with a limited budget.
And so if you’re leasing the vehicle, you’re only responsible for it for three years, and you can make changes every three years, you can go to a minivan, a sport utility, a third-row seat. I mean, I hear this all the time. So if you like the flexibility of that, it is a major benefit for you.
So there’s lots of benefits to leasing vehicles. You have to decide what’s best for you. I have another video that you should check out, it’s called, Leasing versus Buying. That can educate you a little bit more to help you figure out which is going to work best for you.
Share this video with your friends and family, click the like button, and don’t forget to subscribe to the channel. My name is Ronnie Haskins. Have a great day.
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