If you live in a big city, it’s evident that you need a set of wheels to get to wherever you want to go. However, you might be shocked when you learn that the average price of a car in the country amounts to more than $30,000.
That’s why it’s not surprising to find more car buyers leaning towards leasing than buying. According to a report by Edmunds, lease volume in the U.S. increased by 91% for the past five years and reached a record high of 4.3 million vehicles in 2016.
Moreover, the report revealed that millennials lease more than other age groups and they account for 12% of all leases in the country. Also, roughly one out of three millennials who purchased a vehicle in 2016 choose to lease.
So, why do millennials find car leasing more appealing than buying? Here are five reasons.
Disclosure: This post is sponsored by Alpha Finance.
Better Cars for Less Cash
You can lease a late-model luxury car by paying just a little over $300 every month, with no down payment. Let’s face it, you want to look when you drive a car and, sometimes, a used car just won’t cut it.
If you are strapped for cash but need a car, your car options are limited. With leasing, you get more bang for your buck.
Desire for Technology
Compared to the older generations, millennials are more tech-savvy. Just like with smartphones, you buy an iPhone, use it for several years, then when your contract is up, you can get another one.
For vehicles, it’s not too different. You get a car with the latest tech and integrate your smartphone, so you can enjoy all the latest features. You use the car for several years, and when your lease is up, you can return it and get a new one with all the new tech that comes with it.
Using is More Appealing than Owning
Monthly subscriptions are part of a typical millennial’s life. You like watching movies or TV shows, you subscribe to Netflix. You want to listen to music, just listen to Spotify. If you don’t want ads interrupting your playlist, just pay a small subscription fee.
If you want to go on a vacation and want to stay in a beautiful place without hurting your wallet, rent one at Airbnb. Millennials are more inclined to lease a car that they can use, and it can be a better solution for them to be able to use an excellent vehicle which they couldn’t, otherwise, afford to buy outright.
Access to More Information
In the old days, when you’re in the market for a car, you go to a dealership and deal with the car salespeople. They can pressure you to buy a vehicle that you may not really like or can afford.
But nowadays, you can quickly go online, do your research on the model, features, and price of any vehicle. You can also take your time in choosing a car that will suit you best.
Minds can Easily Change
These days you have plenty of choices. You can find a vehicle that suits your current lifestyle. When you’re single, you can settle for a small car that can take you from point A to point B.
But when you decide to get married and have children, you may want a bigger vehicle, like an SUV, or something similar, to fit your growing family.
The appeal of leasing will probably continue to grow as buying a new car outright becomes more and more expensive. So, this trend of renting instead of buying is likely here to stay.
How about you? Does leasing make more financial sense to you? If not, let us know by leaving a comment below.
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