Leasing a vehicle allows you to drive the car for a specified term without purchasing it and provides several additional advantages such as requiring little or no down payment, lower monthly payments compared to purchasing a new automobile, easier disposal of the vehicle, and flexible options when your lease comes to an end. However, auto leasing can be disappointing since it restricts your car usage, needs suitable and scheduled maintenance of the car, demands higher charges should you decide to terminate the lease contract early, and offers you less freedom in customizing your car.
Deciding whether to lease or purchase a new car involves examining the pros and cons of auto leasing. Considers these vital benefits and pitfalls of leasing your car when selecting the best option for you:
There is little to no money required for the down payment on a lease
You don't have to put money down when you lease a car. Even if the dealer wants a down payment, it won't be very much. A lease auto service would benefit you the most if you need a car to drive but do not have the money to initially purchase one or if you cannot secure a loan to pay for the car when you need it most.
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 wonderful for people who desire to drive elaborate vehicles sometimes.
It helps with getting rid of it even without a car
Purchasing a new car soon can only be done if you can find a buyer for the car you have owned for a few years. A definite advantage to leasing a car, is that you do not have to fret over what to do with it when you want a new car. The only thing you have to do is give back the car when your lease contract runs out. 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.
At the end of the term, leasing offers flexible options
Auto leasing also offers flexible options at the end of the lease contract. You have the choice to buy the car, return it or renew the lease. This is a good choice for you if you have not really decided how to get hold of the car, but you badly need to have one.
It limits your car usage
As attractive as it may seem, auto leasing also has its drawbacks. To start with, it minimizes utilization of your car. Most auto lease contracts restrict your car usage for up to 12,000 to 15,000 miles per year. Should you go beyond the stipulated mileage, you would have to pay for the excess mileage penalty depending on your contract. Before you sign a lease contract think carefully about the milage that is allowed in your contract and the miles tha tyou travel, because you do not want to have to pay penalties when your lease is up.
You need to ensure that the car is taken care of
One frustration you might experience with an auto lease is the requirement that the car be kept in top shape at all times. In that case count on paying more when you bring back the leased car You need to make sure you follow the suggested schedule for oil changes and routine check-ups, as well as make sure you keep the car safe when parking to avoid possible damages.
If you decide to end the lease contract early, auto leasing requires higher charges
A termination fee will be imposed should you opt to end your automobile lease contract prior to the end of the term. 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 your ability to customize your car is limited
Last of all, when you lease an automobile you will not be able to customize the vehicle to the extend that you can do so when you buy a car. Just because you need to return the car when the term ends, you cannot make permanent changes to it or you will be charged for that. When you purchase a car, be certain to thoroughly discuss and establish any vehicle enhancements so you do not see unexpected charges later.
Considering these positives and negatives will help you figure if an auto lease or buying a vehicle is best for you. Think about what is important to you and include any conditions you may have - this will help you come to the right decision for you.