Luxury cars are as the word might suggest – luxury. This means that the financial aspects associated with a luxury commodity tend to be exaggerated. As such, people tend to search for different ways how they can enjoy such luxuries without paying the massive asking price.
However, how you use your car and how long you tend to keep it are two very important reasons when it comes to leasing or buying a car outright. Even though leasing does seem like a better idea at first glance, it is a lot better to purchase a used car outright and keep it for a long time if you want to lose the least amount of money possible.
On the other hand, if you want to enjoy a brand-new vehicle every 3-5 years, leasing a car makes a lot more sense. It all depends on what you value the most and how long you tend to keep a car. If you are a successful debt-free individual who wants to treat himself/herself with a shiny new luxury car it makes sense to lease one.
Be sure to use online “buy vs lease” calculators in order to make a sound purchasing decision because buying an expensive car needs to be a calculated expense in order not to hurt your bank account too much. Either way, if it makes sense to you and you enjoy cars on an emotional level, then it’s even more likely you are going to lease a luxury car anyway.
Benefits of leasing a luxury car – Addicted to new car smell
As previously mentioned, leasing a luxury car is luxury which means that you are willing to pay more money in order to enjoy a higher level of comfort, technology, and sophistication. Nothing beats a brand-new car smell every now and then, especially if the car in question is luxurious or even exotic.
This also means that you should not worry about any repairs for a while because the car is brand-new. Cars such as these come with a myriad of warranties and free-service packs which in theory means that you should not worry about any additional expenses for at least a few years.
Compared to acquiring a loan, a lease offers a significantly lower monthly payment which means that leasing a car is beneficial when compared to getting a loan. Leasing a car lacks unnecessary commitment associated with selling the car or deciding when it’s the perfect time to get a brand new car.
Finally, there are countless different benefits to leasing if you lease a car for business purposes because you can deduct a significant portion of your monthly payments depending on how often you drive the car for business reasons.
Drawbacks of leasing a luxury car – Your ownership experience is limited
Even though leasing a luxury car seems like the best course of action when it comes to convenience, that’s hardly ever the case because lease agreements tend to come with all sorts of limitations such as mileage limitations, where you can drive the car, customization limitations and credit score limitations.
Indeed, cars depreciate no matter how you acquire them, but if you keep a car for a long time you will still have some residual value left when it comes time to sell the car. You don’t own the car if you lease it which means that the residual value of the car is not exactly yours to begin with.
Most lease agreements come with mileage limitations which can severely affect how you drive the car and can even cost you a lot more money if you surpass those limitations. You also need a great credit score to even benefit from any kind of car lease, especially if you want to lease a luxury car.
Buying a car vs leasing a car
Whenever you are in doubt, don’t lease the car and try to buy it outright. According to multiple sources, as much as 80% of Americans buy their cars outright which showcases that leasing is not the preferred way to go as far as personal vehicles are concerned.
Buying a car outright enables you to do whatever you want with it which means that you will not have to abide by any rules as far as your ownership experience is concerned. All in all, leasing a car makes more sense if you simply want a new car whenever one comes out and you are willing to pay for it.
On the other hand, if you want to treat yourself with a luxury car that you want to keep for a long time and use without any limitations or worries about all sorts of fees and limitations, it’s better to purchase a car outright.
How can I negotiate a great lease deal?
If you want to maximize the attractiveness of a lease deal, the key factor you need to focus on is preparation. This means that you will have to calculate how much you tend to drive your car every year in order not to shackle yourself with mileage limitations.
You should also try different leasing companies and dealerships to get a better understating of what your credit score gets you. Look for leasing specialists which can cater to your needs more and always be sure to consider all potential additional fees.
What is the most luxurious car on the market?
If you are interested in the very top echelon of automotive luxury, be sure to check out the Rolls Royce Phantom because it is the most luxurious car on the planet. The rest of the Rolls Royce range is also superiorly luxurious to every other car brand on the market.
Bentley, Aston Martin, and Porsche are trailing behind Rolls by quite some margin, but that is understandable considering that they tend to cost less money.
Does it make any sense to buy a luxury car?
It depends on how you define “sense” because financially they certainly are not the best option to go for. However, most luxuries tend to carry financial compromises and that’s why only a limited amount of people are even able to enjoy luxury items.
As such, if you love luxury cars and you dream about owning one without destroying your bank account then it makes perfect sense to buy one. However, do your research beforehand and always ask your wife before you purchase a luxury car.