Why I'm Leasing a Car, Even Though I Can Afford to Buy One

Ownership of a vehicle is an expensive burden to bear.

My brother and I used to own an old Ford F-150. It was cheap, and if we crashed it into a thick concrete pole (it only happened once), we didn't have to worry about giant repair bills -- we just kept driving the old clunker until one scary day, the engine gave out in the middle of traffic. It was a dignified end to a vehicle that managed to putter on for nearly twenty years past its prime. It also taught me some crucial lessons about car ownership.

Four years and a job later, I can afford to buy a better car. Despite that, I'm leasing. Here's why.

Leasing fits better into my long-term financial plan

I'm leasing a car because I remember how much owning an old car sucked. Despite saving us wads of upfront cash, there are costs to owning vehicles for longer than the traditional three-year lease. Leasing is more affordable right now. And as long as I stick to my long-term financial plan, it will continue to be cheaper in the future.

Leasing generally requires lower monthly payments

You only pay off the vehicle's depreciation, not the full-sticker price (plus interest and fees). As someone who came straight out of college with limited funds, I appreciated this option because it gives me extra cash for rent.

Leasing gives me the option to purchase my vehicle upon the expiration of the lease

Many things can change in the three-plus years after beginning a three-year lease. Gas prices have skyrocketed, and the cost of used and new cars is wobblier than a bowl of poked Jell-O. Because leasing gives me the freedom to return or buy my car when the contract expires, I'm not worried about going through the hassle of selling my car in a bad market.

Leasing comes with an expiration date

This is rather important because I have a strong feeling I'll want to swap to an electric car as soon as possible to save on gas fees, clean up the environment, and participate in the coolness of owning a vehicle quieter than the sneaky Batmobile.

Leasing saves time

Leasing my Toyota 2022 Corolla Hybrid began with a fun customization option online and ended with speedy delivery to my shared house. No haggling, no up-selling, and no traveling to and from the dealership. Maintenance fees are covered by warranty and simple to schedule -- and knowing that Toyota ultimately owns the vehicle gives me confidence that the company will do its best to keep it in top condition.

Leasing saves money on repairs and maintenance

Many leases have warranties covering the majority of the lease period. Mine covers two-thirds of my lease and comes with quarterly oil changes and tire rotations. I'm responsible for repairing any damage. Maintaining a brand new car is far cheaper than patching up our old Ford F-150, which averaged over $100 per month in repair fees.

Leasing saves money on gas

There's an argument to be made that every generation of vehicles is generally more energy efficient than the last. The recent explosion of hybrid and electric vehicles is violent proof of that. My current ride gives me about 600 miles for $50 at the gas station, and my old Ford gave me less than a quarter for the same price. That said, I do have to be careful that I don't drive more than my maximum annual mileage, which would force me to pay more per mile.

Should you lease a car?

It depends on your situation. If you can afford the down payment and anticipate being able to meet monthly expenses, then go for it. But blowing the budget is never ideal, so consider a few things before making a decision:

• Ask yourself if leasing or buying a car is worth it. There are cheaper rideshare options for folks who don't make long-distance trips.
• Do you plan on holding on to a car for longer than the traditional three-year leasing period? If so, you may want to consider buying a vehicle.
• Consider if leasing a car fits into your long-term financial plan. If you anticipate needing more cash to purchase a home, then leasing or taking out a loan may be preferable to paying the full sticker price for a vehicle.

Compare your needs to what's on the table. If you decide to lease a car, shop around for low rates and strong discounts, like discounts for high-achieving students. And don't forget to check out similar discounts on car insurance when mapping out costs.

I'm leasing because car ownership doesn't offer me anything special. I don't want the hassle of maintaining an aging car, and I'm not interested in repainting my vehicle hot pink or jacking up the tires like a 'roided Rolls-Royce. Leasing a car fits neatly into my long-term financial goals, and combined with the best auto insurance companies passing out sweet discounts, I stand to save a lot of time and money than I would if I owned instead.