Auto leasing allows you to drive a car for a number of years for a monthly payment without purchasing it, requires low or no down payment, features lower monthly payments than purchasing a new car does, makes disposal easier than owning a car, and offers flexible options at the end of the term. But, auto leasing can also be disappointing because it limits your car usage, requires proper and scheduled maintenance of the car, demands higher charges should you decide to terminate the lease contract early, and gives you less freedom in customizing your car.
Before you make up your mind about whether you would want to buy a car or lease it, it makes sense to do a bit of research on the advantages and disadvantages of auto leasing. The decision to lease a car or not can be confusing so this comprehensive list of the pros and cons of leasing is being provided:
Leasing requires low or no down payment
You don't have to put money down when you lease a car. Should a dealer require a down payment for the car, it would be very minimal. 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.
Auto leasing features lower monthly payments than purchasing
To get a higher quality car at a lower payment price, consider leasing instead of buying. Leasing a car is great for those who want to drive a fancier car than purchasing one would allow.
It makes disposal easier than owning a car does
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. Simply wait until your lease contract is up then take the car back. When you lease a car, and you are ready to move on to a different one, you do not have to be burdened with the disposal of the old car, the car dealer is.
At the end of the term, leasing offers flexible options
When the contract is over, you have several options. 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 can be a deterrent to driving your car as often as you would like
Leasing a car is certainly an attractive option but it does come with some drawbacks. The first thing that you should do is minimize the use of your automobile. Most auto lease contracts restrict your car usage for up to 12,000 to 15,000 miles per year. If you go beyond the mileage stipulated in the contract, you will have to pay an excess mileage penalty. 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
In an auto lease, the need to keep the car in its best condition is another disappointment that you may encounter. If not, then you can expect to be billed once you bring back the vehicle. you should strictly follow the suggested schedule for oil changes and routine check-ups and also u should make sure the safety of car ,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 your ablility to customize your car is limited
one of the biggest demerits of using an auto lease contract is that it doesnt enable us to use the car according to one liking like a self owned car. Since you must surrender the car at the end of the lease, you can't make permanent changes to the vehicle, or you will need to pay charges. Ensure to clarify some vehicle enhancements with your dealer in order to avoid additional charges.
Going over the advantages and disadvantages will assist you in deciding whether it would be best for you to lease or buy a car. Just make sure you identify your priorities, as well as your conditions in order to make a better decision.