Why Car Leasing is a Smart Short-Term Strategy for Young Families

It’s no secret that young families have plenty of bills to pay. They spend money on housing, utilities, food, mobile data and Netflix subscriptions, you name it. Also, if they don’t have a lot of money saved up but need a new set of wheels, that can put more financial pressure on them.

Car leasing may allow you to drive a better, safer car - man behind wheel of new car

So, what can you do if you’re just starting out? How can you afford to buy a car when you don’t have a lot of cash to pay for it upfront? The most affordable way for young families to get a car is either through financing or a car lease.

Nowadays, more and more people are passing up on car loans and leaning towards leasing a car. In fact, nearly a third of vehicle sales can be attributed to leasing. But before you get lured in by the low lease payments, know first if car leasing makes sense for you.

What are the downsides to leasing a car?

If you lease the car longer, your overall costs will become much higher. The number of kilometers you can use on your leased car is limited. And if you go over it, you may pay extra fees.

If you’re big on vehicle customization, then leasing a car is not for you because you have less freedom to do so. Moreover, leasing can be a bad idea because you don’t own the vehicle when your lease is up. And you’ll have nothing to show for all that money you spent.

When does a car lease make sense?

It all boils down to your financial situation. For young families who can’t afford to buy a house right away, they can rent an apartment for several years.

While owning is better than renting, it can be a better short-term option until you have enough money saved in several years.

Many young families are searching for a reliable and new car they can use for their everyday needs. So, leasing can help them achieve this for the time being until they reach a point where they can afford to own one.

Also, there are several instances where leasing can offer many benefits in the short-term. These reasons include:

Lower monthly payments

If you don’t have a huge monthly cash flow, leasing makes more sense since your monthly payments are significantly lower compared to paying in cash or taking out a car loan. If you buy a car outright, your money is tied to it, so you can’t spend much on other things.

More car for your cash

If you like to be on the cutting edge of technology or want to enjoy the latest features, you can get a new car, every three years or so, once your car lease is up. You can just return your car and trade up for a new set of wheels.

Lower taxes

Leasing has become a huge draw for many folks because of the tax relief they can get. Most of the time, the taxes you pay on a leased car a much lower compared to when choosing to purchase a new vehicle.

Less stress on maintenance

Keep your car in excellent shape can be costly. If you’re the type of person who doesn’t like to pay for repairs, car parts and such, you don’t have to worry about those things because, most of the time, your monthly payments include the maintenance and warranty of your vehicle.

Final thoughts

Whether you decide to buy, take out a loan, or choose to lease, it all comes down to your budget and financial situation. For many young families that are just starting to establish themselves, a car lease may be more beneficial for them in the short-term.

What are your thoughts about car leasing? Do you think it’s a good idea? Have you leased a car? How was your experience? Let me know in the comments.

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linda

Ex marketing professional turned family lifestyle blogger. I live in Cardiff with hubby Mat, Caitlin (10) and Ieuan (8).

Find me on: Web | Twitter | Facebook

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Laura
Guest

I really like the maintenance side of things as we have had loads of issues with our cars over the years and having that side of things looked after is a real bonus. Certainly something I would consider

Laura x

Taylor Smart
Guest

i know! plus when you are leasing a car long term they add surprise charges at the end and conveniently put it in the small print!

When looking for my current one i made sure i checked all the small print! But now i get to drive a cute little mini!

Tommy Joseph
Guest

I absolutely think leasing is the way to go. The peace of mind from a maintenance perspective is priceless! Great post!

Joanna
Guest
Joanna

I am currently in the process of learning how to drive so I will looking quite soon at options for getting a car. I didn’t think at leasing before but it does make sense to keep the costs low.

Kate Williams
Guest

I’ve always just bought really cheap cars (and yes they have all broken down) but I have a few friends who lease and they always say it is brilliant!

Louise Joy
Guest

This post is really interesting, it makes sense as I remember how down I felt when I couldn’t afford a car/car insurance earlier this year yet had relied on having a car for so long. It’s tough because having a car is such a necessity these days too!

Michelle Twin Mum
Guest

I thought about leasing a few years back but then didn’t change my car. I am looking again now though so I must investigate it more. Mich x

Sarah | Boo Roo and Tigger Too
Guest

With lives becoming more and busier, I really like the idea of the maintenance and servicing being included in the fee. No need to worry about garage costs etc.

Stephanie
Guest

I’m looking at a new car and really like the idea of leasing x

Hannah
Guest
Hannah

It’s such a great idea to lease! My Dad sells cars and he does more leases than ever now!

Han
Guest

While I bought my first car outright I definitely plan to lease my next as and when – it’s just so much more convenient! basically the apple upgrade program but with cars

Louise
Guest

This is a great idea, especially if you don’t need to drive on a regular basis. It means you can just lease a car as and when you need it.

Louise x

Sheri
Guest

I think this is great if you will not be using the car all the time and if you use it on a short term basis.

Stewart
Guest

Excellent read! I have always found that car leasing is the way to go if you cannot afford to buy a vehicle outright. Even just looking at the prices associated to HP deals nowadays makes me a little nauseous.

There has even been discussion around car financing going down the route of subscription-based services like Netflix… welcome to the future!