To Lease Or Not To Lease
To lease or not to lease. That is the big question. Leasing a car is particularly a very common practice nowadays as it grants you to opportunity to get a new car at a low monthly payment. After your lease is up, you can buy that vehicle or pick up another new car lease. There are disadvantages and advantages to leasing cars which means that you should keep in mind some of these mentioned factors before you sign on the dotted line.
Check out this really quick overview video to get you started…
As you the lease the car, your focus should be on using the correct fuel for the vehicle, getting the oil changed regularly and other standard measures that will ensure that the car is in good shape. Should anything go wrong, you only need to take it back to the dealership so that they can fix the problems.
Another big advantage is that you’re driving the latest model every few years. If you need the latest model for business reasons such as being a salesperson or insurance agent, then leasing makes financial sense.
The last reason leasing is advantageous is that you can get a highly valued car for less. You can drive a higher priced car than you would be able to afford if you were buying the car.
There are some disadvantages with leasing a vehicle though. The main disadvantage is that you will always have monthly payment as compared to owning a car. When leasing a car, you have a monthly payment that doesn’t add to your assets.
You don’t own the car at the end of a lease; you either have to buy it or lease another car. Not leasing, in other words buying, means making a car payment for five years or so and then owning the car. Leasing means you must make a car payment every month of 3-5 years and not owning it after making the payment. It is definitely expensive in the long run.
With leasing, you’re basically renting it and with renting comes the mileage and damage restrictions. You can only drive so many miles a year on a leased car for free. After that, you have to pay a higher rate for every mile over that limit. Damage to the vehicle that may involve the mobile mechanic can incur heavy penalties as well.
For some buying tips on car leasing visit the Money Saving Expert website here.
Based on the advantages and disadvantages discussed in this article, to lease or not to lease is a decision that only you, the driver, can have the final verdict.