Luxury cars are defined by their exclusive and high-quality features, and their looks and traits uniquely characterise them as a sign of prestige. Driving a luxury vehicle was an impossible dream for many hopeful drivers. Nowadays, a luxury car lease makes it possible for you to drive a Porsche, Bentley, or Mercedes-Benz S Class without paying the deluxe price.
When you lease a high-end vehicle, you get the pleasure of driving a luxurious car without some of the commitments or expenses associated with buying. Furthermore, leasing a high-end car is easier than you might expect. Explore the basics of a luxury car lease to find out what you need to know before leasing one.
How Car Leasing Works
Car leasing essentially involves renting the car for an agreed period at a fixed rate. A lease term refers to leasing a car for a set amount of time. Depending on the provider, this will be displayed in years or months and referred to as your contract length. Car finance agreements, and leasing contracts, should spell out all terms and conditions very clearly before signing.
While lease car costs are determined by a car’s make and model, the size of your monthly payments is determined by the length of your lease and the amount you are willing to pay upfront. The amount of mileage that can be driven annually is usually agreed upon, and you’ll have to pay extra money at the end of the contract if you exceed the agreed mileage limit.
Maintenance is typically not included in lease contracts, but it may be possible to add it to the monthly payment. It is your responsibility to service the car unless you specify otherwise, but you can also buy a manufacturer’s service pack.
Before you return the car at the end of the contract, ensure it is in good condition. Finance companies expect you to cover the repair costs if the car is damaged.
The Benefits of Leasing a Luxury Car
Leasing a luxury car has many advantages, including affordability. Here are some additional benefits if you are considering leasing a luxury vehicle.
Leasing a luxury car can lower depreciation when you return it. The length of a lease agreement depends on the number of years you keep the luxury car, its mileage, and its condition when returned. In addition to their residual value, luxury cars retain their market value, which can help keep the price down by considering this “turn-in” value when determining payments.
Maintenance is Less
There is also less maintenance involved with leasing a luxury car. Manufacturer warranties and dealer warranties may cover your leased vehicle. In the unlikely event that the engine or transmission fails, you should be covered. Depending on the lease, routine maintenance may also be included. The dealership can perform oil changes on your leased car and ensure it’s in good condition.
It’s Easier Than Buying
There are often strong business relationships between luxury car enthusiasts and their car dealerships. Regarding leasing, it may be more convenient to work with the same leasing company and salesperson each year. Dealerships and leasing companies with a reputation for looking out for their customers and providing a great deal are what people are looking for.
Lower Monthly Payment
The monthly and down payments are usually lower when drivers lease a vehicle. Luxury car dealers may not advertise incentives and rebates on standard cars, but they are typically reflected in lease agreements and prices. A lease will cost you less over three years than buying the same vehicle since it still uses your credit score to determine your interest rate.
Trading in is Less Problematic
Leasing a car has many benefits, including the ability to trade it in. Your trade-in value won’t need to be negotiated with the dealership, so you won’t have to worry about it. After completing your lease terms, you can begin shopping for your next luxury vehicle with the latest technology. You should know what you like if you work with the same dealership, and they may be able to suggest options for a new lease based on what you want.
In a nutshell
Buying may be the best option for those looking to build equity and keep a vehicle for a long time. Leasing a luxury car is the best option if you want to drive away with a brand-new Porsche, BMW, or Ferrari without paying the high price tag.
All imagery courtesy of the car brands featured.