Is It Better To Lease A Car For 24 or 36 Months?
When it comes to leasing a car, there are a lot of factors to consider, and one of the most important is the length of the lease term. Two common lease term options are 24 and 36 months. But which one is better? In this blog post, we’ll take a closer look at both options and help you decide which one might be right for you.
But first, let's review the basics of leasing a car.
What Is Car Leasing?
Leasing involves a monthly fee to drive a new car for a set period. At the end of the lease, you can return the car, purchase it outright, or lease a new car. The lease length can vary, but 24 and 36 months are two popular options.
Advantages Of A 24-Month Lease
One of the most significant advantages of a 24-month lease is that it allows you to change cars more frequently. A 24-month lease might be perfect if you enjoy the latest model. Additionally, a shorter lease term means you’ll be under warranty for the entire lease, which can save you money on repairs and maintenance
Another advantage of a 24-month lease is that you’ll have a lower risk of exceeding the mileage limit. Most lease agreements have a mileage limit, and if you exceed it, you could be charged a fee at the end of the lease. With a shorter lease term, you’ll have less time to accumulate excess mileage, which can help you avoid these fees.
Advantages Of A 36-Month Lease
The main advantage of a 36-month lease is that your monthly payments will be lower than with a 24-month lease. This is because the cost of the car is spread out over a more extended period. A 36-month lease might be your better choice if you're on a tight budget.
Additionally, a 36-month lease gives you more time to pay off any negative equity from a previous lease or trade-in. If you owe more on your old car than it’s worth, this negative equity can be rolled into your new lease. With a 36-month lease, you’ll have more time to pay it off.
Finally, a 36-month lease can be a good choice if you’re looking for a car with a higher residual value. The residual value is the car's estimated value at the end of the lease. Cars with higher residual values often have lower monthly payments, and a 36-month lease gives you more time to enjoy the benefits of a higher residual value.
Which Option is Right for You?
Ultimately, deciding between a 24-month and a 36-month lease depends on your individual needs and preferences. If you enjoy driving the latest models and want to avoid excess mileage fees, a 24-month lease might be the best choice. If you’re on a tight budget or need more time to pay off negative equity, a 36-month lease could be the way to go. Either way, do your research, read the fine print, and talk to your leasing agent to make an informed decision. At Car Guy NY, we’re here to help you find the lease option that works best for you.
Is Leasing A Car Right For Me?
Whether leasing a car is right for you depends on your individual needs and preferences.
Leasing a car can be a good option if:
- You prefer to drive a new car every few years: If you like having the latest features and technology, leasing can be an excellent way to ensure that you always have a newer car.
- You have a limited budget: Lease payments are generally lower than loan payments for the same car, so leasing can be an excellent way to get a nicer car than you might be able to afford.
- You want to avoid the hassle of selling or trading in a car: With a lease, you simply return the car at the end and walk away, without worrying about negotiating a price or finding a buyer.
- You don't want to worry about repairs and maintenance: Most leases come with a warranty that covers repairs and maintenance for the duration of the lease.
On the other hand, leasing might not be the right choice for you if:
- You prefer to keep your car for a long time: Leasing is not a good option if you want to own your car outright and keep it for many years.
- You put a lot of miles on your car: Most lease agreements come with a mileage limit, and if you exceed this limit, you could be charged a fee at the end of the lease. If you drive a lot, leasing might not be your best choice.
- You want to modify your car: With a lease, you generally cannot modify the car since you don't own it.
- You want to build equity: When you buy a car, you build equity over time as you pay down the loan. With a lease, you don't build equity since you are only paying for the use of the car for a fixed period.
Ultimately, the decision of whether to lease a car depends on your individual needs and preferences, as well as the terms and costs of the lease.
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