The Advantages And Disadvantages of Leasing a Car
January 29, 2011
It's important to consider good and bad points regarding the decision to lease or purchase a vehicle. Have a look at the most important pros and cons of auto leasing so that you can decide which choice suits you best:
Leasing requires low or no down payment
It is not like buying a new vehicle because leasing a vehicle does not usually need a down payment. Even if the dealer wants a down payment, it won't be very much. Leasing a car would be most advantageous if you need access to a car but cannot afford to initially buy one or get a loan to pay for one.
When you lease rather than buy a car, your monthly payments are smaller
Auto leasing also features lower monthly payments than purchasing a new car, allowing you to drive a more expensive car with similar monthly payments than if you purchased a less-expensive car. This is a boon for people who are interested in driving spiffier vehicles occasionally.
It helps with getting rid of it even without a car
More often than not, you may not be able to switch your old car for a new one as soon as you would like, since you will have to find a customer for your old car before you can buy a new one. With auto leasing, you do not have to worry about disposing of your car. Simply wait until your lease contract is up then take the car back. When that happens, you can lease another car of your choice or buy a new one and leave the burden of disposing the old car to your car dealer.
Leasing offers flexible options at the end of the term
Auto leasing also offers flexible options at the end of the lease contract. You may choose to buy a car, restart your leasing contract, or return it to the lot. This makes a lot of sense if you know you need to purchase a vehicle but have not found the right one yet.
It puts a limit on the amount of time you use your car
While car leasing may sound good there are things to watch out for. First of all, it limits your car usage. The maximum distance you can drive a leased car is 12,000 to 15,000 miles per year Should you go beyond the stipulated mileage, you would have to pay for the extra mileage penalty depending on your contract details. You need to take time before signing a lease contract to make sure you understand any penalties that may occur, such as exceeding mileage limits.
The car needs correct, scheduled necessary maintenance
Something else to consider when leasing an auto is that you must keep the car in pristine condition. Otherwise, charges shall await you upon returning the car. Take care to keep up with the recommended schedule for such things as oil changes and check-ups while also keeping your vehicle safe from damage when parking.
If you end the lease of the motor vehicle earlier than the agreed period, you will be asked to pay higher charges
Note that you will incur a termination fee if you end your auto lease contract prior to the term ending date. If you want to lease a car, make sure you will be able to finish your contract so you can avoid being charged later.
When you lease, you don't have much control over customizing your vehicle
Finally, with an auto lease contract, you will not be able to customize your car as much as you can when you purchase your own car. Since you need to return the car when the term ends, you cannot make permanent changes to it or you will be charged. When you purchase a car, be certaint to thoroughly discuss and establish any vehicle enhancements so you do not see unexpected charges later.
Examining these pros and cons will help you decide whether an auto lease or a purchase will best suit your needs. Just make sure you identify your priorities, as well as your conditions in order to make a better decision.
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