Lease a Volvo Luxury Model

Have you checked into your local dealership for a Volvo lease yet? No? Well, you really should. Hopefully, I got to you in time before you decided to outright buy that new luxury model. In general, buying a new luxury model is a no-no. Not only are they expensive, but they depreciate harder than your average-priced model. Therefore, you lose a lot in value. Along with avoiding depreciation, you’ll also be paying a lot less for that luxury Volvo if you lease instead of buy. These are only a couple of the advantages leasing a new luxury car provides you, and if done right, you can save a lot of money and headaches.

Especially if you land a good lease special, which are offered all the time from luxury brands like Volvo.

Buying a New Luxury Model is a No-No

Buying a new luxury model outright is a no-no. Not only because of depreciation (loss in value) and the high MSRP, but also because of the after care. Once your warranty expires, that’s it. Now, you’re stuck making monthly payments on a vehicle that could potentially break at any point in time. When it does, you can bet that it will be quite costly. Simply because it’s a high-end luxury vehicle, and they’re expensive vehicles to maintain.

On top of that, buying the vehicle requires a down payment. 20% of the cost is the advised rule of thumb, and if you don’t do that, you might be upside down on your loan. Meaning you owe more than the car is worth. With the high price of these vehicles, going belly-up is even more of a risk if you don’t drop a decent down payment on your prospective new car.

If you thought that large down payment was bad enough, just wait till you see the monthly payments. Interest rates have a field day on the big monthly payments that need to be made to pay off an even more intimidating car loan. Since most luxury vehicles start in the $40,000 range and go up from there, you can see how it would be intimidating.

When it comes time to trade-in that vehicle or sell it so you can get a new one, good luck. Not only will the depreciation have stripped away most of the car’s value, but you’ll also have to deal wth the hassle of going through the trade-in or selling process.

In general, all your cash is tied up in this one car, which has experienced a severe loss in value over the years. Ultimately, it causes you to pay for something that isn’t even worth the amount you’re paying. That’s bad enough on a cheaper economy car, but with a $40k+ luxury vehicle? That’s devastating to think about.

Definitely Lease Instead; Here’s Why

Leasing avoids all of these problems. Sure, you might not be able to modify your vehicle or drive an excessive amount of miles each year, but it’s well worth it.

For starters, you don’t own the car. Essentially, you’re renting a vehicle; and just like a rental vehicle, it means there are certain rules you have to follow. The two restrictions I mentioned before, modifying and going over the mileage, are the two most prevalent.

Not owning the vehicle actually comes with a world of benefits. Right off the bat, you’ll notice you are paying much lower monthly payments, less sales tax, and a smaller down payment. In some cases, there might not even be a down payment. More importantly, saving money by leasing a luxury model means that those who might not be able to afford buying a luxury vehicle out right, can afford to lease one. In the end, it allows you to drive a better-quality car for less money.

Unlike when it comes to buying a luxury model, however, a zero-dollar-down policy for a leased vehicle is okay. Why? Because, at the end of your lease contract — which is four years on average — you’ll be trading it in to get another brand new model. Not only does this mean you aren’t required to pay off the full amount of the car, but you won’t be wasting money on a vehicle that just keeps losing value. Avoiding a lifetime of seeing your car depreciate is perhaps the biggest advantage that leasing a vehicle has to offer.

While your warranty might run out after a certain amount of years when you buy a luxury model, you could potentially have a lifetime of warranty coverage, which means lower repair costs. How? Because, every time you trade in your old vehicle to lease a new one, you get the warranty coverage again. Meaning that you are always covered under your vehicle’s factory warranty. Warranties are important for any type of new car, but even more significant when it comes to luxury vehicles that have naturally costly repairs and parts.

Clearly, leasing is the way to go. A few words of advice: if you’re worried about going over your yearly mileage, you can purchase extra. Don’t beat on your car or modify it, and you’ll avoid any lease penalties. Since the terminology can sometimes be confusing, make sure to read it all thoroughly. Finally, whatever you do, don’t terminate your lease early because you’ll be hit with a nasty fee.

If you are smart and careful, you’ll enjoy hassle-free car “ownership,” and a boon of benefits to boot. Finding a lease special is like hitting the jackpot, since it will capitalize on the already amazing advantages that leasing provides you compared to buying a car. For example, right now Volvo has a deal where your first three payments are taken care of when you lease (or buy) a new 2016 or 2017 eligible Volvo model. Make sure to check your local dealership as well, and see what specials they’re offering when it comes to leasing. In the end, it doesn’t just benefit you — it gives the dealership a good car they can put up for resale, which is why they’ll often have specials.