At a time in his life when he’s seeking less hassle, Jack Correa derived a lot of pleasure out of leasing, rather than buying, a pearl-white Lexus RX 350 crossover. “This way we always got a new car, and I didn’t have to worry about any expense on it,” says Correa, 58, who retired to Palm Coast, Fla., two years ago. He has leased cars since 2005. Correa is an example of how leasing isn’t just for business people seeking to simplify their expense reporting or playboys marking time with one sports car bauble before they switch to the next latest, greatest thing. Experts say it can also make sense for retirees. “Leasing takes all the guesswork and surprises out of your cost,” says Scot Hall, executive vice president for Swapalease, a company that helps motorists get out of their leases early. “All the benefits of leasing apply even more to that older demographic.” Leasing allows lower upfront costs, allowing seniors to keep more of their money in their accounts. They don’t have to worry about repair costs: virtually all are covered under the car’s warranty in the early years. At the end of the term, leasees just hand the car back. “Maybe you want the simplicity factor,” says Justin Leach, spokesman for Toyota Credit. It’s as easy as driving the car back — “take it in and have them do it.” By holding onto cars only a few years, retirees will be able to take advantages of the latest safety and convenience breakthroughs in cars, which are coming at a faster pace. With fewer years left behind the wheel, seniors can try out the latest and greatest before they finally hang up the keys. With many seniors living on fixed incomes, having the predictable payment of a lease all the way through the term — and knowing that about the only other costs are fuel and insurance — makes budgeting a lot easier, says Mike Money, owner of a Subaru dealership, Money Automotive Group in Salina, Kan. And then, when the lease term is up, typically 36 months, seniors don’t have to worry about how much their now-used car will fetch in trade for a used car or go through the pain of trying to find a private buyer for it. There’s no guesswork about depreciation. Rather, it is built in as soon as they sign the lease. Original article posted on USA Today
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