Gone are the days when millennials only had the option to take an Uber or ride a bike to get from one place to another. As of 2020, millennials are aged between 24 and 39 years and not only does this mean that they are out of college by this time, but also that the older millennials might have started their own families.
So, there’s a fair likelihood of them needing their own cars to travel. However, a 2016 study revealed that over one-third of millennials (34%) are opting to lease their cars instead of buying them right away. But what could be the reason behind it? Well, according to the CarExpertGroup, there can be many!
#1 Preference for Rental/Subscription Services
A vast majority of the millennials who are now planning on buying their own cars are the same people who grew up in the age of subscription-based streaming services such as Netflix and Hulu. Moreover, many millennials have grown up in rented apartments. So, nobody knows it better than the millennials how easy it is on the mind not having to worry about long-term payments.
Therefore, their preference for leasing a car instead of buying it at once is highly understandable. They would rather have the luxury of enjoying their new car instead of stressing about involving themselves in a long-term contractual obligation.
#2 Easy to Switch Cars
Most of the millennials have young blood flowing through their veins. One thing that is commonly observable among Generation Y is how indecisive they are. Their indecisiveness can also reflect in their vehicle choices. Even if they spend hours, days, or even weeks, doing their research on the car they would like to buy, there’s a strong chance that in a couple of months or years, they would come across an even better option.
And to make sure that they don’t have to curb their dreams, leasing makes it easy for the lessee to swap vehicles whenever they desire to.
#3 Easy to Drive High-End Vehicles with Cutting-Edge Technology
Today, cars aren’t just some dumb boxes with an engine to get you from one place to another. Over time, cars, just like our homes and phones, have become smart and are now equipped with modern tech features. From Wi-Fi and Bluetooth to parking assist and cruise control, never has it been more enjoyable to drive a car.
However, these tech-heavy cars have jaw-dropping price tags attached to them. But thanks to leasing, millennials can now get an opportunity to drive brand new vehicles loaded with impressive features without emptying their pockets.
#4 Lease Payments Are Affordable
While the older millennials are about to cross 40 in a year, the younger end of Generation Y is just a couple of years removed from their college days. This means that many of them still need to pay off their student loans. Moreover, there’s a high chance of US citizens in their early 20s not being financially strong.
So, buying a car at once or signing a basic multi-year car loan might not be good options at this point. However, with the option of leasing available, millennials can commit to short-term agreements (as shorts as three years) with minimum down payments.
Moreover, leasing can save you money in many other ways i.e. newer cars offer better mileage, the tax owed remains minimum, and you don’t have to worry about losing money due to depreciation.
#5 Easy Repairs & Maintenance
No car can go a long way if it isn’t maintained properly. Therefore, when you become a car owner, you should schedule regular maintenance sessions with your mechanic to keep your car in optimal condition. Moreover, it’s possible for you to encounter a situation that would warrant your vehicle to go through extensive repairs.
It’s common knowledge at this point that most lessees in the present age are trying to save money for their and their family’s future. So, being hit with enormous repair costs could impact their long-term plans.
This is where the option of leasing saves the day once again. Leasing a new car can prove to be a stressbuster for you since new vehicles generally require minimal maintenance such as tire rotations and oil changes. Moreover, countless leasing programs come with a free repair plan. Additionally, many cars come with a warranty that might save you from massive repair costs, shall the situation arise.
Having a car is extremely important these days but there’s no denying that almost every efficient car costs a lot of money. As for millennials, they would rather drive something that doesn’t damage their wallets. This is where the option of leasing proves its worth. There are countless reasons why leasing a vehicle is the norm for millennials, one that has enabled them to enjoy the luxury of driving high-end vehicles at low costs.