Getting a new car is an exciting decision. You mainly have two options, that is to buy or lease. Leasing has gotten popular because it keeps your monthly payments lower. You basically “rent” the car for a few years instead of buying it. You make lower monthly payments to drive the car but don’t own it. MG is a British brand with stylish and affordable models. Could MG car leasing be right for you?
Pros of Leasing an MG Car
- Lower monthly payments -- with a lease you only pay for the depreciation during your term, not the full car price. With a lease, you only pay for the vehicle’s depreciation during the term not the full sticker price. This makes the monthly payment more budget-friendly. Based on current offers, leasing could save you $30-60 per month compared to financing the same MG model.
- Drive a new MG whenever -- Leasing enables getting a brand new MG every 2 to 3 years as leases expire. You can continually enjoy the latest technology, interior and exterior styling, performance upgrades and safety innovations. The frequent upgrades keep you current as MG enhances its models over time. Leasing provides an easy path to driving the newest car.
- Warranty coverage -- Most MG lease deals include their comprehensive factory warranty. It protects against repair costs as long as you properly maintain the vehicle and stay within the mileage limits.
- Lower upfront cost -- leasing requires little or no money down, which makes it way more accessible. This greatly improves accessibility and lowers the barrier to entry compared to financing which often demands a hefty down payment. If you lack significant savings, then leasing makes an MG more attainable with less cash upfront.
- Possible tax deductions -- depending on your situation, an MG lease may offer deductions for business use. Consult a knowledgeable tax professional to understand how leasing an MG might benefit your specific circumstances. Even a small deduction could help offset the monthly payment.
Some things to keep in mind:
- Annual mileage limits -- leases restrict the total miles, usually 10k-15k per year. Going over means pricy overage fees. Make sure your driving habits work with the limit.
- No long-term ownership -- with a lease, you simply hand back the keys. If you eventually want the pride and equity of ownership, financing or purchasing may be better options. Leases work best for routinely driving new cars.
- Maintenance responsibilities -- While warranty repairs are covered, you’re responsible for paying for routine maintenance on a leased MG like oil changes, tire rotations, etc. Account for these costs in your budget.
- Carefully following the mileage limits and wear or tear guidelines stated in your lease contract is crucial. Exceeding them can result in potentially large damage and overage charges when you return the car. Understand these penalty fees fully upfront.
- Limited Customization Options: Since MG retains ownership of a leased car, extensive modifications like performance upgrades or audio systems may be prohibited. Only minor accessories or wraps with approval are typically allowed. If you want heavy customization, leasing is not ideal.
The bottom line is leasing an MG makes sense if you want lower monthly payments and always driving the latest model under warranty. But know the commitments around mileage limits and maintenance.