Are you thinking about looking for a car but just don’t have enough money for it? Or maybe you have been thinking about a car swap? Then you might want to start considering a car lease. A car lease is a good option for people in your monetary situation because it will allow you to drive a new vehicle out of a dealership without having to pay a large amount of money or having to worry about dealing with a bank for a car loan.
Usually, a dealership will agree to lease a car for a 20% down payment and monthly installments for the amount of time that you will lease the car. The amount that you pay on your monthly installments will be less than for a car loan because you will not be paying any interest. The idea is that with a lease, you are just borrowing the car and will be paying for its depreciation as a result of you using it. There are various advantages and disadvantages to leasing instead of buying. Let’s have a look at some of these:
Advantages of leasing
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Less Mechanical Issues
When you lease a new vehicle, you are going to get the benefit of driving it during its best years and that means that you will experience a lot less mechanical issues than you would with an older car.
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Maintenance Could Be Free
Because you’re getting a brand new car, it should be covered by the manufacturer’s warranty and that could include regular maintenance, saving you money every time that the car needs to be taken in.
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You Can Get A Better Car
Choosing to lease instead of buying or a car swap means that you will be able to consider more expensive options than you could if you were to buy. You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford.
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You Won’t Have To Worry About Trade-In Value
It is said that a new car loses half its value as soon as you drive it out of the dealership. This might be an exaggeration, but the point is that a car’s value does go down with use. Leasing instead of buying comes with the benefit of not having to worry about the car’s trade-in value.
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You Won’t Have To Sell It
If you have ever sold a car, you know what a huge hassle it can be. Just having to show the car to people who are interested in buying it is a hassle that takes time. Then you have to haggle because people always want a better deal and that can be mentally exhausting. And you will have to do that countless times until the car is sold. But with a leased car, all you have to do is take it back to the dealership and you are done with it.
Disadvantages Of Leasing
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You might pay more than a loan
Depending on the price tag of the car that you choose and the terms of the lease, you can actually end up paying more that you would have for a loan in order to buy. So you have to get a good deal!
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The installments never end
When you buy a car with a bank loan, you know how long you will have to pay and then the car is yours. But a leased car is just that…leased, it is not just a car swap; it will never be yours so the installments just keep going until you stop using it. You might choose another car after that one, but if it is leased too, then the installments keep going just the same. If you lease one car after another, monthly payments go on forever. By contrast, the longer you keep a vehicle after a loan is paid off, the more value you get out of it. Over the long term, the cheapest way to drive is to buy a car and keep it until the wheels fall off.
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Limited mileage
Usually, your lease will indicate how many miles you can drive the car, yes, there is a limit. If you go over that limit, then you will be charged according to the terms and conditions that you agreed to in the contract.
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You must keep the car in perfect condition
The dealership wants you to return the leased car exactly as it was the day that you took it. They expect there to be normal tear and wear from the time that you use it, but you have to baby it anywhere that you go because you are going to pay for any scratches, bumps, or anything else that happens to it.
Is Leasing Right For You?
Taking all these pros and cons into consideration is important when you start to think about a car swap by leasing. A car is an absolute necessity for some people because work is far away, or because they have to take the kids to school, or due to other things. So if you definitely need a car and can’t wait to save more money, a lease might be a good option.