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Are leasing cars more suitable for older drivers? The Benefits of Leasing a Vehicle In this video series, you will learn about leasing is a Vehicle







Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make smarter financial decisions by providing you with interactive financial calculators and tools that provide objective and original content. We also allow you to conduct your own research and compare data for free and help you make sound financial decisions. Bankrate has agreements with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies that compensate us. This compensation may impact how and when products are listed on this site, including, for example, the order in which they may appear in the listing categories, except where prohibited by law for our mortgage, home equity and other products for home loans. But this compensation does not influence the content we publish or the reviews appear on this website. We do not include the universe of companies or financial offers that may be available to you.



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5 min read The publication was published on March 03, 2023.
Authored by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers in navigating the details of taking out loans to purchase a car.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are committed to helping readers gain confidence to control their finances by providing precise, well-researched and well-written information that is broken down into complex subjects into digestible pieces.









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The idea of leasing a car might not be top-of-mind for someone over 50, but it can be a better option than purchasing a brand new car for some. Older adults on fixed incomes that want to drive a new vehicle with the most recent safety features every couple of years or who want an easier term commitment to their vehicle could benefit from leasing rather than the long-term commitment of buying. Six benefits of leasing are several benefits that older individuals should take into consideration before deciding whether leasing a vehicle is the right choice for them. 1. Lower monthly payment Leasing a car typically means a lower monthly payment and lower initial costs than buying a vehicle. The monthly payments are lower due to the fact that when you lease, you're only paying a percentage of the total cost of the vehicle. "Although the price difference between leasing to buying has significantly narrowed in recent years...the monthly payments should be less expensive than buying a car," says Ronald Montoya, senior consumer advice editor at Edmunds. The total cost of ownership throughout the lease might be less due to the car being in factory warranty. Essentially, the primary costs an older adult must be thinking about when leasing a car is whether the lease's cost is reasonable, cost of gas and expenses associated with . The average monthly lease payment is $578 . Although the monthly payment may be less, unless you choose to buy the car at the close of the lease however, there will be car payments for those who continue to go from one lease to another. This can be a problem for those who don't receive a regular income in. When budgeting for leases, keep in mind that even though monthly payments might be more affordable, lease agreements include extra fees and expenses such as fees for exceeding mileage limits, which can be a problem if you are planning to do a lot amount of travel or road-tripping. 2. Choice to Buy Regardless of whether a car is secured directly from a dealer, or a person who is older who takes over a lease for the remainder of the term, the lessees have the option to when they reach the conclusion of the lease for the amount stated in the lease. If you're considering whether to purchase it is important to think about the vehicle you are leasing as if you were shopping for a . Determine if the vehicle is priced in a similar manner to other vehicles that are the same model and model in the same condition and has similar mileage. If that's the scenario, then it might be a smart financial decision to purchase. Remember that the cost will increase when the lease is over since the car will no longer have the same type of warranty. Repairs and maintenance is now the sole responsibility of the driver. 3. Tax deductions Senior citizens who choose to lease a car and are working part-time in retirement may benefit from tax deductions. The information is available in advance through the . When using the vehicle for work, older drivers might be able to deduct some of the lease's payment on their tax returns, as well as the expense of maintaining the vehicle and depreciation of the vehicle. This tax deduction option is only available to drivers who are leasing a vehicle during semi-retirement, and are working in some capacity but is something to consider. 4. The most recent models One of the benefits of leasing cars is the possibility to drive one of the latest vehicles on the market. The technology used in cars is constantly evolving, ensuring more safety on the road than it was in the past. For those who are older, the added security of modern features, such as backview cameras as well as parking assist and lane departure alerts can be very valuable. If you lease for the long term and then move from one lease in the future, are sure to always have the latest technology and safety features on the vehicles you're driving. 5. Protection for warranty on leased vehicle will have warranty protection. It means that any repairs the vehicle may require are covered and won't cost you anything out of pocket. "With the lease of a vehicle, you never have to worry about any out-of-warranty repairs as the vehicle comes with a factory warranty for the duration of your lease" says Montoya. Warranty coverage like this can be extremely valuable for those who are older, particularly those with the tightest budgets, since it removes a lot of financial uncertainty or guesswork associated with ownership of a vehicle. However, motorists will usually have to cover minor repairs like oil changes and tire rotations. 6. Flexibility Since leasing is usually for 3 years or less and the car loan typically lasts five or more years leasing offers more flexibility for those who are unsure how much driving they will be doing in the coming years. It could be easier for retirees to anticipate their requirements for driving a couple of years away However, it may be more difficult to predict driving needs over five years as those needs could change much more rapidly. Tips to secure the best deal before signing lease, ensure that you're receiving the most favorable deal. Here are a few tips for doing that. Negotiate the cost of the car To get the best deal on a lease car Try to negotiate the cost of the car by yourself, exactly like you would if you bought the vehicle. Negotiating the selling price is essential since it's the primary factor that determines the cost of leasing the car. If you are planning to negotiate, be sure to check the Kelley Blue Book to better know the market price and if you're getting the best price. Look for pre-negotiated prices Another approach is to use an online service that provides pre-negotiated prices. Companies like AAA (American Automobile Association), Costco and TrueCar offer these services, or you could go through your local bank. Get only what you need A variety of other factors influence the cost of lease payment such as how much residual worth of the car, the length of the lease, and mileage limit. When considering a lease, you should be careful to only obtain the lease with a large enough mileage allowance to avoid any additional mileage fees. Also aim to pay no more than $1,000 in charges associated with obtaining the lease, also known as "drive-off" fees. Other alternatives to leasing cars is taking over the lease from a person who wants to get out of their lease early. This eliminates the need to negotiate the lease and deposit with the dealer, as these actions have already been taken care of by the original lessee. It's just a matter of getting a takeover deal for the vehicle you want and one that has an affordable monthly payment. "There are websites that help in swapping your lease to another owner," says Montoya. "But lease swaps are not available to all manufacturers." The lease marketplace SwapALease is a good example. offers a platform for lessees to can sell their leases to taking over and car buyers are able to browse cars for sale. But it is important to be attentive to the remaining miles and the length of time remaining on the lease in order to ensure that the lease will meet your needs. The bottom line Leasing a car instead of buying could be a great alternative for older drivers dependent on your budget and the way you intend to utilize the car. Be sure to weigh the pros and cons of leasing prior to signing the"dotted line. If you don't plan to purchase the vehicle at the conclusion of the lease term it could set yourself up for a lifetime of car payments. If you plan to proceed with a lease, research the prices for the vehicle you're interested in to ensure you can negotiate the most favorable deal possible.


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Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the ways and pitfalls of borrowing money to purchase an automobile.



Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping their readers to control their finances by providing precise, well-researched and well-written data that can break complex subjects into digestible pieces.






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