INTRO
Leasing a car can seem like the obvious answer to having wheels that are both well-maintained and newer than your average used vehicle, but there are some things you should know before taking this route. Here’s a list of the pros and cons of car leasing so you can make an informed decision before you sign on the dotted line.
Cars are expensive
If you’re looking to save money, but need a new car, leasing might be your best bet. When you lease a car, you don’t buy it—instead, you rent it for a fixed period of time at a monthly rate. Since cars are expensive purchases, leasing allows people to try out different models without breaking their budget. You can get nearly new cars with low mileage for much cheaper than buying them.
Try getting a loan first
If you’re interested in getting a car, but don’t have a whole lot of money to shell out for one up front, you may be considering a car lease. It can seem like an attractive option if you want your own vehicle without having to worry about paying it off right away; however, there are some things you should know before taking that plunge. For example, try getting a loan first.
Car leases have low monthly payments
Car leasing might be a great way to drive around in style, but there are some downsides. Make sure you fully understand your leasing terms before signing any paperwork. Consider whether there are hidden fees and if certain types of driving are prohibited. The answers can vary depending on which auto manufacturer or dealer is involved.
You can upgrade at any time
While car leasing isn’t right for everyone, it can be a great tool for people who like to upgrade frequently. Since you aren’t technically buying a car, there are no long-term ownership costs associated with leasing. This means that you can buy a new car every few years without any hassles or hefty fees attached. Plus, since most leasing agreements include mileage limits, all you need to do is turn in your leased vehicle at any time.
No matter what, you will be paying top dollar in the end
One important thing to remember, no matter what, you will be paying top dollar in the end. The reason for car leasing has nothing to do with you saving money, although you may think that it does, but simply just because the monthly payments will be lower. Don’t fall for it! If you are going to pay top dollar for a vehicle anyhow, buy it outright and own it yourself!
If anything goes wrong, you are still responsible
When you lease a car, you do not own it, so if anything goes wrong with it, you are still responsible for that damage. You will be responsible for paying to fix everything that breaks or gets damaged while you are leasing an automobile. Most leasing firms give you the option to choose the type of insurance coverage you wish to include. It might reduce some of the costs if your car is damaged while you are still paying for your lease.
