Whether to lease or buy a car? It is a question that has left many car users confused. Both have their advantages and disadvantages. There are things to consider like your future needs, and what you want in a car, or do you like driving the latest cars? People who lease a car look for smaller monthly payments. Is leasing a waste of money? Keep reading to know the answer.

If you want to know whether leasing is for you, consider these things –

• Monthly expenses – Unless you have the kind of cash to buy a car outright, you will mostly be taking a financial loan. When it comes to comparing interest rates for your auto loan and your leasing fee, the latter is definitely lesser. You can even afford a more luxurious car for lesser monthly installments.
• The joy of owning a new car every few years – Is leasing a waste of money? No, when you consider the fact that you can own newer and upgraded models every few years without worrying about car loans or resale value of your old car. Once your lease period is over, you can give your old car to the leasing company and pick up a brand new model. This is one of the common reasons why people love leasing compared to buying a car.
• Lesser cost of maintenance – When you consider maintenance costs, leasing is definitely cost-effective. Most new cars available on lease are covered by a manufacturer warranty that is available from 3 to 7 years. This means that you do not have to worry about maintenance-based expenses. You can give back the car when the warranty period is over and choose a newer one.
• Depreciation costs do not bother you – Irrespective of how well you maintain your car, its value depreciates with time. You may have to sell your car for a fraction of its initial purchase cost. This problem doesn’t occur with leased cars. Your money does not depreciate with time since you do not own the vehicle.
• Save money on tax rebates – If you run a company and want a couple of cars for business, then leasing is the way to save money. The IRS allows business owners to deduct both financing costs and depreciation costs of these leased vehicles. The tax rebates are higher for a lease than for a car loan.
• Lower initial costs – You can lease a car for a smaller upfront cost, which is impossible when you buy the same model.

Is leasing a waste of money? All these points clearly prove that it is not. If you love the excitement of driving new cars every few years and are worried about down payment and higher interest rates of car loans, leasing makes more sense.