Clever Compare Leasing Deals

Leasing means a limited, short commitment to a vehicle.

After all, no one knows what will happen in the next few years. Many are worried about job security and their finances, so the commitments that come with buying a car aren't as attractive. Instead, consumers are leaning toward leasing because of the availability of affordable two- and three-year leases. In addition, leases are more flexible because the contract can be easily transferred to another person without incurring a large financial burden.

Leasing requires little upfront investment.

Due to the Corona crisis, quite a few people have depleted their savings, leaving little money for a down payment on a car. But leasing contracts can be made with little or no down payment. Of course, the monthly lease payment is higher without a down payment, but sometimes it can still make sense. If the monthly payments are still too high, it makes sense to lease a cheaper car.

Low interest rates mean cheaper payments.

Current loan rates are at nearly seven-year lows, with many interest-free loans available. This significantly reduces the cost of monthly payments.

Manufacturers try to gain market share quickly through incentives

The auto industry has been under mighty pressure, and not just since the Corona crisis. Every month, therefore, they offer incentives to make car purchases and leases more affordable. But that could change when sales pick up again. To find deals, therefore, it pays to use comparison portals like CleverCarDeals.de. The terms of the lease are made clear by listing the three main elements of the contract:

- Monthly payment.

- Length of the lease in months.

- The amount due upon conclusion of the contract, which is comparable to a down payment.

Leasing protects against sudden loss of value.

Leasing is based in part on the projected value of the car at the end of the contract. But these days, no one actually really knows what the car will be worth in three years. So if the value of the car drops unexpectedly, that's the lessor's problem, not yours. However, if the value of the car is unexpectedly high at the end of the lease, you have the option of buying the car yourself and may be able to make money by selling it.

Leasing is based in part on the projected value of the car at the end of the contract. But these days, no one actually really knows what the car will be worth in three years. So if the value of the car drops unexpectedly, that's the lessor's problem, not yours. However, if the value of the car is unexpectedly high at the end of the lease, you have the option of buying the car yourself and may be able to make money by selling it.

Cars are investments, and not small ones. Depending on the status of your credit, your budget, and the reason you want to buy a new car, leasing may be the more economical option. For example, if a large down payment on a new car just isn't feasible right now, leasing the same car will cost much less per month than financing. Plus, if you want to buy the car at the end of the lease term, the price will be a fraction of the MSRP. This means that your monthly payments will be much lower during the financing period, and that lower monthly payment is much more feasible.

Financing is one of the main reasons why it's smart to lease a car, but there are many more benefits!

Leasing is ideal for occasional drivers

If you don't drive enough to justify buying a car, leasing is a viable alternative. When one leases a car, it is common for the rate to be calculated according to the desired annual mileage (km). However, if you simply need a reliable (=new) car to get to work, go shopping or drive short distances, you can almost only justify a new car financially if you lease it. If, on the other hand, you need a car for long distances, buying the vehicle may make more sense than leasing it.

Always something new

Variety is another reason why leasing a car makes sense. Buying a new car is a commitment - and who's to say you won't fall in love with another car 1 - 2 years after buying it? There are so many great models with a wide variety of features, powertrains, etc. that for many, leasing is a no-brainer. After all, with leasing it is common to return the vehicle after a period of usually 3 years and get a new car.

You do not have to sell your vehicle

A sad fact about buying a car is that it depreciates in value very quickly and selling it is often a hassle. On the other hand, when you lease a car, it goes directly back to the dealer at the end of the lease term. At that point, you can either leave it at that, renew the lease, lease a new car, or buy the leased car. Since you don't have to sell the car, there's no need to deal with the many circumstances of selling a used car.

Aside from that, the luxury of not having to worry about the value of your vehicle is another reason why leasing a car is smart.

No worries about repairs

Since the car is usually a new vehicle, the warranty covers a wide range of repairs. However, you are responsible for any damage that occurs outside the warranty. The intervals at which a car is to be serviced are usually stipulated in the contract.