Business

Why More Young People Are Starting To Lease Their Cars

The trend in the automobile industry of Canada that is perhaps most striking to researchers is that more and more younger consumers are opting to lease vehicles as opposed to outright buying them. The younger generation rids themselves of the notion that just because something has always been done a certain way, doesn’t mean it can’t be shaken up a bit

The reasons for this shift in the automobile industry toward leasing include but are not limited to the following: paying less for depreciation; obtaining more flexible lease terms; and enjoying a wider variety of cars in a lifetime. If you want a deeper dive into the benefits of leasing a car here in Canada, check out the AUTO ONE Group website, which has a good amount of info – this article aims to offer a short overview.

IMAGE: PEXELS

Pay Less For Depreciation

Vehicles depreciate perhaps faster than any other commodity in the world. In fact, it is estimated that vehicles lose up to 11% of their value the moment they are driven off the lot once you’ve purchased it.

Flexible Lease Terms

Leasing a vehicle is far less of a commitment than buying a vehicle. Many leases can be for as short of a period of time as 24 months while car payments on a vehicle you plan to own could stretch more than triple this length of time. In fact, researchers have found that the average lease is currently only 36 months while the average car loan continues to rise year after year, currently sitting at an astounding 78 months, which means you will be tied down to your vehicle for an agonizingly long six and a half years before you have the opportunity to upgrade. Leases provide flexible terms that you negotiate and because the cost per month is a fixed rate there will be no surprises about the value of your car when you take it back to the dealership at the end of the lease term.

Enjoy A Variety

Buying a vehicle usually means that you intend to drive it for the rest of its usable life. This means you are tied down to one vehicle regardless of the great new features and improved fuel efficiency that may come out over time. Upgrading to a vehicle that may get far better fuel economy may end up saving you more money in the long term than maintaining operation of your existing car even if it is fully paid off. Plus, with cold Canada winters, you may realize that the car you’ve selected doesn’t handle all that great in snow. The great thing about a lease is that you get to enjoy a variety of vehicles to see what you do and don’t like about each one.

Young people make up the largest generation in history. Their practices will largely dictate the future, and as their car leasing habits expand, dealerships will continue to meet this need with new and improved ways to give the customer exactly what they want.

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