Aug 27, 2018
lease instead of buy

Studies show the oft-analyzed millennial generation – young adults born between the early 1980s and late 90s – are more likely to lease a vehicle than any other age group. In fact, 34 percent of millennials preferred to lease rather than buy in 2016. Additionally, auto leasing is at an all-time high – more than 4 million cars were leased in 2016, which is more than double the amount in 2010.

So, why the sudden surge in vehicle leasing in recent years, and why younger generations? It turns out there are a handful of reasons it is becoming more common to lease instead of own.

More Flexibility

Consumer trends show many young adults prefer monthly subscriptions over long-term, contractual commitments. They also tend to switch jobs more frequently and want to upgrade every few years. In other words, the younger generation values flexibility and choice more than their older counterparts.

Leasing allows young drivers to swap vehicles when their needs or wants change without the long-term commitment of buying. For example, a two-door sporty sedan might be a great fit after you graduate, but in a few years when you are ready to start a family, you might need to upgrade to a larger vehicle.

Lower Short-Term Costs

Research has shown that millennials are subject to higher levels of student loan debt, poverty and unemployment than the previous two generations. Simply put, it may not be fiscally responsible or feasible for some young adults to commit to a standard six-year car loan worth more than $30,000.

This is where leasing comes into play. Edmunds reports that monthly lease payments are 23 percent lower than purchase payments on average and the terms are as short as 36 months. Plus, many leasing deals require lower down payments or none at all, which is major plus for those on a tight budget.

Other ways leasing saves money:

  • Better gas mileage with newer cars
  • No money lost from depreciation
  • Less sales tax paid over time

Access to New Technology

Considering the vast majority of young adults own smartphones and spend about 25 hours per week online, it is no surprise technology plays a large role in their decision to lease. It offers a way for millennials to get their high-tech fix without the commitment or costs that come with purchasing a new vehicle.

Many new Hondas, for instance, are equipped with features like HondaLink®, Apple CarPlay and Bluetooth hands-free entertainment systems. Mobile Wi-Fi hotspots are another common feature that younger generations enjoy. Leasing is a way to access these gadgets without breaking the bank.

Hassle-Free Maintenance and Repairs

It is no secret regular maintenance and sometimes large, expensive repairs are a big part of car ownership, especially when you buy used. As many lessees are young and potentially on a fixed income, the added peace of mind of driving a newer, more reliable vehicle is a major plus.

In many cases, only routine maintenance – like oil changes and tire rotations – is required and at minimal cost. In fact, many dealers offer free routine maintenance programs for lessees or vehicles may be covered under the manufacturer’s bumper-to-bumper warranty, so even an expensive repair can be taken care of without much hassle.

Lease a New Honda Today at Honda of Seattle

Leasing is not just for the younger generation – recent data shows that all age groups are leasing more than ever before, and for good reason. If you are looking to drive home in a new Honda today – but also want to keep your options open down the road – consider leasing with Honda of Seattle. We have a large selection of featured lease offers with several models to choose from – from hybrids to crossovers to SUVs.

Call 206-382-8800 today or visit our website to view our inventory and contact us online.