Car Leasing Versus BuyingAdvantages To Car Leasing Versus Buying A CarFor instance, if you like to drive a brand-new car every three to four years and can negotiate good car leasing rates, car leasing can often work out to be less expensive than buying a new car. That's partly because you are not leasing the full value of the car, but a value based on the three or four years you will actually be using it. And when the lease ends, you don't have to be concerned with selling or trading in your old car, just turn it in and lease a newer model. As the end of the lease approaches, simply shop around for the best car leasing deal and drive away in your new car. Also, monthly car leasing payments are often lower than monthly car loan payments making it a bit easier for those on a tighter budget to drive a new car. The lower leasing payments can also make leasing a used car more affordable than purchasing, but you need to make sure there is a comprehensive used-car warranty included in the deal. But, there are some well-off people who take advantage of the lower leasing payments so they can drive a more expensive vehicle than they could otherwise afford. Luxury car leasing has become very popular. Cons Of Leasing A CarOf course, there are also disadvantages to car leasing versus buying.First off, you don't own the car. The lessor retains ownership. If car ownership is important to you, then don't lease. Auto leases come with an annual mileage limit which is usually between 12,000 and 20,000 miles, depending on the make of car and the leasing company. For instance, leased imported cars often come with the higher mileage limits and better car leasing rates, so it pays to shop around. You can usually negotiate the mileage limit upwards before signing the lease agreement, but if you exceed the mileage limit at the end of the leasing period, you could be charged up to 25 cents per mile. If you are a high-mileage driver, then leasing probably won't be practical for you. Breaking a lease early can prove very expensive. If circumstances arise and you cannot afford to keep the car, or if you no longer want it, you are still responsible for the monthly payments. You will be charged a whopping termination fee! This is one of the biggest cons of leasing a car. Before leasing, therefore, compare car leasing to car buying. Be as sure as you can be that you will be able to make the monthly payments throughout the term of the lease, and be sure that you will be satisfied with the milage limit, and the make and model of car. If not, don't lease! TOP of Car Leasing Versus Buying RETURN to Budgeting Finances HOME to Get The Best Credit Cards
|
