Lease Your Unused Car and Earn Passive Income

When you're shopping for a car, whether it's to replace your clunker or to buy your child his first wheels, you may think you know everything there is to know about getting the right kind of car. However, many people do not consider an option that may ultimately be a better investment: leasing a car. While both leasing and buying have their drawbacks, leasing may be a better option. If you've heard of leasing but never researched how it works or why it might be a financially sound decision, you need to read on and get a quote.

A good way to understand how leasing works is to think of it as an apartment. You make payments every month, but you don't own it (the car or the apartment). The difference is that once your lease is up, you can buy the car if you want. Like an apartment, you must put down a security deposit in advance. This will be used to pay for any damage the car may sustain while you lease it, such as cracks in the windshield, dents in the car body, etc. These are important things to consider when deciding whether or not you want to leasing your car.

One of the most exciting things about leasing a car is that you can get a new one every few years. You could drive several new cars in your life because of the lease! Leases are typically for 2 or 3 years and have a mileage limit of approximately 15,000 miles. The downside to this is that if you go over the mileage limit, you'll have to pay a fee for each additional mile.

While you may say that it doesn't matter if you lease or buy because you're still making monthly payments, you need to consider this. Leasing a car gives you low monthly payments because you are only charged for the expected depreciation of the car over the life of the lease. When you buy a car, you eventually pay for it and own it, but your monthly payments can be very high depending on what you put down. Leasing a car is also infinitely cheaper because since you always drive a new car, you avoid many of the maintenance hassles and costs that older cars require. In the long run, you save a lot of money by leasing a car.

In general, buying a car is a good idea if you plan to own that car for many years beyond the time you pay for it. If you want a cheaper option and are excited about the novelty of a new car every two years, leasing is a better option for you. In any case, learning about auto loans and comparing auto loans versus leasing is always a good idea to make sure you know what you're getting into.