5 Reasons to Lease Your Next Car | Hall Mazda & Volkswagen

When it comes time for your next vehicle, one of the first decisions you’ll face is whether to buy or lease. For years, many people have automatically assumed that buying is the better financial decision because, eventually, you own the vehicle. And for some drivers, buying absolutely makes sense. But today’s vehicles, technology, incentives, and ownership costs have changed the equation. For many drivers, leasing deserves a much closer look.

Here are five reasons why your next vehicle might be better as a lease.

When you finance a vehicle, you’re typically paying toward the entire purchase price of the vehicle, plus interest. A lease works differently. Your payments are primarily based on the portion of the vehicle’s value you’re expected to use during the lease term, along with the applicable rent charge, taxes and fees. That can mean a lower monthly payment than financing the same vehicle under comparable circumstances. It may also allow you to choose a higher trim level or additional features while keeping your payment within your budget.

Instead of asking: “How much car can I afford to buy?” It may be worth asking: “What can I drive for the payment I’m comfortable with?”

This may be one of the most overlooked advantages of leasing. Nobody knows exactly what today’s vehicle will be worth several years from now. Used-car values can be affected by the economy, fuel prices, manufacturer incentives, new technology, vehicle supply, and consumer preferences. When you own the vehicle, that depreciation risk belongs to you. With a traditional closed-end lease, the vehicle’s residual value is established when the lease begins. If the vehicle ends up being worth less than expected at lease-end, assuming you’ve met the lease requirements, you have the option to return it rather than absorb that loss in market value.

But there’s another side. If your leased vehicle is worth more than its predetermined purchase option, you may have options that allow you to benefit from that equity. In other words, leasing can protect you from the downside while still leaving opportunities when the market works in your favor.

Think about how much vehicles have changed in just the last five years. Driver-assistance systems have improved. Infotainment systems have evolved. Hybrid and electric technology continues to advance. Connectivity keeps getting better. Fuel efficiency changes. And features that were once available only on expensive vehicles can quickly become standard equipment.

If you purchase a vehicle and keep it for eight or ten years, the technology you’re driving is essentially frozen at the year you bought it. Leasing creates a natural opportunity to reevaluate your vehicle every few years. That doesn’t mean you need the newest gadget simply because it exists. But when improvements involve safety, efficiency, comfort and convenience, having the opportunity to regularly move into newer technology can have real value.

Unexpected repairs are one of the least enjoyable parts of owning an older vehicle. A typical lease term often keeps the vehicle within much or all of its manufacturer’s new-vehicle warranty period, depending on the term, mileage and manufacturer’s coverage. That can make vehicle expenses more predictable. You’re driving a newer vehicle. You’re less likely to encounter age-related repairs. And many covered mechanical issues that arise during the applicable warranty period may be handled under the manufacturer’s warranty. Of course, a warranty doesn’t eliminate every expense. Maintenance, tires, wear items, damage and anything excluded by the warranty remain the driver’s responsibility. But for someone who likes the predictability of driving a newer vehicle, leasing can be an attractive way to avoid some of the uncertainty that comes as vehicles age.

One of our favorite things about leasing is that the end of the lease doesn’t necessarily force you into one decision. Your needs may be completely different three years from now. Maybe your family gets bigger. Maybe your commute changes. Maybe you decide you want a smaller vehicle. Maybe you’d like a hybrid. Maybe you love the vehicle you’re driving and don’t want to give it up.

At lease-end, depending on the terms of your lease and the programs available at that time, you may be able to:

That flexibility can be valuable because you’re making the decision based on your circumstances then, rather than trying to predict today what you’ll need years into the future.

No. If you drive a very high number of miles, plan to heavily modify your vehicle, tend to keep vehicles for a very long time, or simply prefer eventually owning a vehicle without a monthly payment, purchasing may make more sense. That’s why at Hall, we don’t believe the conversation should start with:

We think it should start with:

Once we understand those answers, we can show you both options and let you decide which makes the most sense.

Whether you decide to purchase or lease your next Mazda or Volkswagen, our goal at Hall is the same:

Make the process simple, transparent and easy.

We’ll explain the numbers.

We’ll show you the options.

We’ll answer your questions.

And we’ll help you understand the differences between buying and leasing without trying to decide for you. Because the best way to acquire your next vehicle isn’t necessarily the way you’ve always done it. It’s the way that works best for you today.