Buy or Lease? New Report Explains Why Leasing is the Better Choice

Jason DeRusha of CBS Minnesota reported that Americans are holding on to their old cars for an average period of 11 years. This can only mean good news to car dealers all over the USA as experts predict that there will be a dramatic rise in new car sales in the coming months.

The Law of Supply and Demand

Since car buyers have held on to their old cars for so long, this led to a dramatic shortage of quality used cars. The laws of economics takes over--a shortage of supply will inevitably result in higher prices. Blame it on the 2007 economic recession. People did not have the purchasing power to buy a new car during those trying times.

And since the inflow of used cars is low, and prices are high, now is the best time to lease a new car. Interest rates are also at an all-time low. If you prefer leasing over buying, then this is better than getting your hands on a used car.

With leasing, you get to enjoy low monthly payments. You are also free from the obligation of selling the car or trading it to the dealer. simply return the car, choose a new car lease, and drive away in another brand new car.

You might have heard of this before, but choosing between leasing and buying will still depend on your needs and personal preference. For instance, if you prefer to always drive a brand new car every 24 or 36 months then leasing is the perfect choice--not unless you can afford to always buy a new car, of course.

Auto Leasing Disadvantages

Car leasing has drawbacks. For starters, if you are a high mileage driver then it is better to buy a new car or purchase a used car. This is because leasing comes with mileage limits. If you exceed the prescribed number of annual miles indicated in the leasing contract, then you better be prepared to pay excess mileage charges.

You will also need to be a meticulous car owner if you choose to lease. Car leasing companies will charge you for 'excess wear and tear' on your new car lease. You will need to pay for any damage incurred to the paint job, body panels, and interior of the car at the end of the lease.

The trick is to take advantage of a free lease quote, before approaching the car dealer. Requesting a free online lease quote will present to you secret lease deals, low lease prices, and low APR rates. You can also compare lease prices and find hidden lease deals. With all that information in your hands, you are sure to find an auto leasing deal that is right for your budget.