The concept of leasing is fairly simple, yet many consumers don’t completely understand. A lot of people see it as being similar to a “rent-to-own” scenario, but for some reason, on a much more sinister level.
While leasing certainly does have similarities to renting and rent-to-own plans, it’s far from being the same thing. In fact, leasing is a well-respected and common financial concept that has been used in the commercial world for decades as a method of financing buildings, equipment and vehicles — although it is still relatively new to most powersports consumers.
Leasing is a method of financing, similar to a loan. It would be a mistake to think that consumer vehicle leasing is like apartment leasing, apartment renting or car renting. The differences are so significant that any attempt to try to understand one by drawing on your knowledge of the other will only result in a serious misunderstanding.
For many people, leasing a new vehicle every two or three years would be more expensive than buying one and keeping it after the final payment. Then again, a lot of people are happy to lease a vehicle they could never afford to buy, even if it doesn’t necessarily save money — hence why so many luxury vehicles are leased.
For more information on vehicle leasing, click here.