Leasing a car is much more flexible than purchasing a car, but it's still a contractual obligation. Before you check into a Lexus for lease, you may want to be sure that you're financially prepared. Here are a few things for you to consider.
What Terms Are You Looking At?
The terms of your lease are controlled by your financial situation and your credit history. If you have sterling credit, the leasing company may feel comfortable extending you a lease that lasts up to five years. If your credit is troubled, the leasing company may want a lease as low as six to twelve months.
The shorter your lease term, the more money you'll likely pay on a monthly basis. If you're not getting the terms you want now, you could hold off until you can get better ones later. At the same time, there is a trade off. Though shorter lease terms are more expensive, they also convey higher levels of flexibility.
How Stable Is Your Financial Situation?
You will be responsible for the terms of the lease for the duration of the lease. If you lease a Lexus for 12 months, you're expected to continue paying for 12 months; it's like renting a apartment.
You should have a relatively stable financial situation and be able to pay the full amount of the lease throughout the term of the lease. If you're expecting to change jobs soon or drastically change your income, now may not be the time. If your income has been static or going up for the last few years, on the other hand, it may be the perfect time for a lease.
Are You Going to Want a Different Car?
Finally, leasing isn't just a financial decision; it's a lifestyle decision. Leasing is a good idea if you're going to want another car within a year or two. With luxury cars, a year or two can be a big deal. If you're OK with having the same car in the next five years, though, now may actually be the time to buy.
It's almost always easier to lease a luxury car than purchase one brand-new. If you love having a new, low maintenance car all the time, leasing is probably the right choice for you. As long as you feel as though you can pay for the vehicle for the appropriate amount of time, it's a fairly low-risk investment.Share