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Is leasing a car better for older drivers? The Benefits of Leasing the Vehicle in this article is leasing is a Vehicle







Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators that provide objective and original content, by enabling you to conduct research and analyze data for no cost and help you make informed 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 Earn Money The deals that are displayed on this site are from companies that pay us. This compensation can affect the way and when products are featured on this site, including for instance, the order in which they may be listed within the categories of listing, except where prohibited by law. This applies to our mortgage, home equity and other products for home loans. This compensation, however, does have no impact on the information we publish, or the reviews you read on this site. We do not cover the entire universe of businesses or financial offers that may be accessible to you.



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5 min read published March 03, 2023.
Writen 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 ins and outs of securely using loans to buy a car.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are committed to helping readers gain confidence to take control of their finances with clear, well-researched information that breaks down otherwise complex subjects into digestible pieces.









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The idea of leasing a car might not be the top choice for an older person but it may be a better choice than purchasing a new vehicle for a few. Older adults on fixed incomes that want to own a brand new car that has the latest security features every few years or want an easier time frame for their car could benefit from leasing instead of the long-term commitment to purchase. 6 benefits of leasing There are a variety of benefits older individuals should take into consideration before deciding whether leasing a vehicle is the best option for them. 1. A lower monthly payment vehicle typically requires the payment of a lower amount per month and less upfront cost than purchasing the vehicle. The monthly payments are less because 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 decreased over the last few years...the monthly cost is likely to be lower than buying a car," says Ronald Montoya, senior consumer advice editor for Edmunds. The overall ownership costs throughout the lease could be less due to the vehicle being covered by the warranty of the manufacturer. The main costs an older adult must think about with a leased car is whether the lease payments is affordable, the fuel costs, and other expenses related to . The typical monthly lease payment is $578 . Although the monthly payment may be less, unless you opt to buy the car at the expiration of the lease and there are always the car payment for those who continue to move between leases. This can be a problem for those who do not have a regular source of income coming into. When budgeting for leases be aware that while monthly payments may be less costly, lease agreements include extra fees and expenses such as charges for exceeding the mileage limit that could be an issue if you plan to do a great deal of traveling or road tripping. 2. The option to purchase a car irrespective of whether the vehicle is purchased directly from dealers, or a senior person is able to take over a lease for the remainder of the lease, lessees are able to buy at the end of their lease, purchase a car for the amount stated on the contract. When considering whether to buy it is important to think about the leased car in the same way as if you were looking for an actual . Determine if the vehicle is priced in a similar manner to similar cars similar to the same brand and model, in the same condition, and with similar mileage. If that's the case, then it may be a good financial choice to buy. Remember that the cost will increase after the lease expires since the car will no longer have the same type of warranty. The cost of repairs and maintenance is now the sole responsibility of the driver. 3. Tax deductions Senior citizens who decide to lease a vehicle and who are still working part-time while retired may be eligible for tax deductions. The information is available ahead of time through the . By using the vehicle for work, older adult drivers may be able to deduct a portion of the lease payment on their tax returns, along with the cost of maintenance for the vehicle and depreciation of the vehicle. This tax deduction option is only available to those who lease a car during semi-retirement, and are working in some capacity , but is something to think about. 4. The most recent models One of the benefits of leasing vehicles is the opportunity to drive one of the newest vehicles available on the market. The technology available in vehicles is constantly evolving, ensuring more safety on the road than it was in the past. For those who are older, the added security of new features like rearview cameras, parking assist and lane departure warnings, are very beneficial. Those who continue to lease for the long term and then move between leases from one to another, can have the latest technology and safety features in the vehicles they drive. 5. Vehicle warranty protection A car you lease will come with warranty protection. This means any expected repairs the vehicle may require are covered and will not be a burden on your wallet. "With the lease of a vehicle, you never have to worry about any out-of-warranty repairs, since the car comes with a factory warranty for the duration of the lease," says Montoya. This type of warranty is extremely beneficial for older individuals, especially those who may be on the tightest budgets, since it removes a lot of anxiety or uncertainty that comes with vehicle ownership. However, motorists will usually have to cover minor maintenance such as tires rotations and oil changes. 6. Flexibility As a lease is typically for three years or less and the car loan is typically for longer than five years leasing may offer greater flexibility for people who aren't sure the amount of driving they'll be doing in the coming years. It might be simpler for an older person to estimate their requirements for driving two years away however it could take more effort to anticipate the requirements for driving over five years because the needs of those who lease could change more dramatically. Tips for getting the best deal before signing a lease, make sure you're getting the best deal you can. Here are a few tips to follow. Negotiate the price of your car to obtain the most favorable deal for a car lease Try to negotiate the cost of the car on your own, just as you would when you purchase the vehicle. Negotiating the selling price is important because it is the primary factor that determines the car lease payment. When you attempt to negotiate, be sure to check the Kelley Blue Book to better understand market pricing and whether you're getting the best deal. Search for prices that have been negotiated. Another approach is to use an online service that provides pre-negotiated prices. Organisations like AAA (American Automobile Association), Costco and TrueCar offer these services, or you could make use of a local bank. You can only get what you need. There are a variety of other variables that influence the price of lease payments such as how much residual worth of the vehicle as well as the length of the lease, and mileage limit. When contemplating a lease be careful to only obtain one that comes with an adequate mileage allowance to avoid any additional mileage fees. Also aim to pay no more than $1,000 in fees associated with obtaining the lease, also known as "drive-off" costs. Alternative options for leasing a car is to take over the lease of someone who wants to get out of the lease early. A eliminates the need to negotiate the lease and a down payment with a dealer as these steps have already been completed by the first lessee. It's just a matter of finding a takeover offer on the vehicle you want and one that has an affordable monthly payment. "There are websites that help with swapping your lease to another owner," says Montoya. "But lease swaps aren't offered for all brands." The lease marketplace SwapALease is one example. It lets lessees can sell their leases to purchase and buyers are able to browse cars for sale. However, it is crucial to pay close attention to the number of miles remaining and the duration remaining on the lease in order to make sure that the lease can satisfy your requirements. The bottom line Leasing an automobile instead of purchasing can be a good option for older drivers, depending on your budget and how you plan to utilize the car. Be sure to weigh the advantages and disadvantages of leasing prior to signing the"dotted line. If you do not plan to buy the car at the end of the lease term and you're setting yourself up for the possibility of never-ending car payments. If you're planning to go by leasing, do your research on the prices for the vehicle you're interested in so that you can negotiate the best bargain feasible.


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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 with the ins and outs of securely taking out loans to purchase the car they want.



Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are passionate about helping readers feel confident to take control of their finances by providing precise, well-researched and well-written facts that break down complex subjects into digestible pieces.






Auto loans editor




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