When it's time to get your next vehicle, one of the major questions you need to ask yourself is whether you want to buy or lease. You may automatically think you want to buy your next vehicle without knowing the benefits that leasing can bring. Below we'll explain how leases work and describe several benefits that may tip the scale in favor of leasing.

What Is a Vehicle Lease?

A vehicle lease is essentially an agreement between you and the dealership to borrow one of their new vehicles. Rather than purchasing a new car with an auto loan, you instead agree to make payments toward the vehicle based on the depreciation value. All vehicles lose value over time as you drive them. For example, a new Lexus worth $50K may be worth approximately $28K after three years. With a lease, you agree to make monthly payments toward that $22K difference rather than taking out a loan for the entire $50K.

With a lease, the dealership still owns the vehicle. At the end of the lease term — typically three years — you have a decision to make. You can either return the vehicle to the dealership and choose something else to lease or buy, or you can purchase the car you've been leasing based on its lower value.

What Are the Benefits of Leasing a Vehicle?

Leasing is a popular option for many people searching for a new vehicle due to its numerous benefits and advantages over finding financing for the full amount. Let's look at some of these benefits.

You'll Enjoy Lower Monthly Payments

Perhaps the biggest benefit of choosing to lease rather than buy a new vehicle is the lower monthly payments. Since you're mainly paying toward the vehicle's depreciation value, the amount that you need to pay throughout the lease is lower than the full price of your desired Lexus. The result is often significantly lower monthly payments. These savings can either give you extra breathing room in your monthly budget or allow you to upgrade to a nicer model that you wouldn't be able to afford at full price. 

You Can Always Drive the Latest Vehicle

Another benefit of leasing is that you are always driving one of the latest releases. Leases are only available on new models, and once your term is up, you can simply choose another recent model. This means that the car you drive is typically no older than 3 years old. As a result, you get the most enjoyable driving experience thanks to modern amenities and innovations.

In addition, you'll get the latest safety technologies, such as autonomous driving, blind-spot monitoring, and helpful safety sensors. Then, once you return the vehicle, you can lease the next new model, which will feature even newer comfort, performance, and safety innovations. If you're someone who wants to drive a car with the best possible features at all times, leasing is the way to go.

You'll Require Less Maintenance and Repairs

Not only do leased vehicles feature the latest comfort and safety innovations, but they also require less maintenance and repairs. Since leased vehicles are new, you get a car with no wear and tear on the equipment. The first years of a vehicle's life are the most hassle-free in terms of visiys to the mechanic. Some leases, including on Lexus vehicles, even come with complimentary services for some of the most common jobs, which can save you money on the few tasks you do need to perform. To avoid the hassle of unexpected vehicle repairs, opt for leasing.

You Don't Need to Worry About Resale Value

Finally, when you lease a vehicle, you don't need to worry about its resale value. For those who choose to buy a new car, there's always the thought of how much it will be worth whenever it comes time to sell. Many factors contribute to a vehicle's resale value, such as the mileage and its condition. This can lead to a car owner worrying about how they use their vehicle since they want to get as much as possible when they sell it.

Those who lease don't need to think about this, though. The value of the returned vehicle is locked in at the time you sign the lease. As long as you abide by the terms of the agreement, you'll know exactly how much the vehicle will be worth when the lease is finished. Knowing the value makes it easy to decide in advance whether you want to buy out the vehicle at the end of the term or lease another vehicle instead. This information helps you know what to expect and relieves possible worry.

Why Is Leasing Right for You?

Whether leasing is right for you will depend on several factors, and the main one is your financial situation. Leases are typically more affordable on a monthly basis, especially when you factor in the significantly reduced maintenance and repair costs. However, when you buy a vehicle, you're the owner. This means that once you pay off the loan, you won't have to make any more payments. This means that buying a vehicle may be more affordable in the long-term, while leasing is easier on your short-term budget.

Leasing is also the better option if you want the latest features in your car. New vehicles improve with each new release, and after just a couple of years, your new model can become out-of-date. To ensure you always have the best driving experience, take a look at the possibilities leasing gives you.

Are You Ready To Explore Your Leasing Options at Longo Lexus?

To buy or lease a new Lexus in the El Monte, California, area, visit us at Longo Lexus. Our team would be happy to show you the latest models and discuss your payment options. We can also talk through your lease return options so you'll know what to expect at the end of your lease. We can also help you secure the best loan financing for your situation. With our assistance, you'll find the perfect Lexus for your needs at a price you can afford. Get started today by browsing our inventory online or contacting us to schedule a visit.