A car lease allows you to acquire a new vehicle without having to take out a loan or pay a large amount of cash. All you need to do to lease a car is to make a small down payment followed by monthly payments for the lease period. When the term ends, you simply return the car to the dealer. To answer the question of whether leasing a car is for you or not, you need to first consider the drawbacks.
You Won’t Own The Car
With leasing a car, you are essentially renting and not buying the car. This means you won’t have the equity in the car toward the acquisition of another vehicle. As mentioned, you will have to return the car to the dealer or the leasing company when your term expires.
Leasing May Be More Costly Overtime
After leasing several cars, you will have spent more money than if you purchased a new or used car in the first place.
Leasing Can Incur Penalties
You may have to pay extra for penalties if you exceed the number of miles in your contract, fail to keep the car in good condition both inside and out, cause significant wear and tear to the car, and try to return the car before the term ends.
If you have no problems at all with any of the conditions above, then leasing a car might just be right for you. Moreover, leasing a car may make sense for you when:
You Currently Do Not Have The Cash To Buy A Car
Leasing does not require you to pay a huge amount of cash upfront. The down payment is also lower compared to buying. Sometimes, you won’t have to provide any down payment at all, depending on the agreement.
You Don’t Drive A Lot
If you know that you won’t likely go beyond the mileage cap in your contract – typically between 10,000 to 15,000 miles annually – then leasing might be a good option.
You Can Take Good Care Of The Car
Leasing is also perfect for you if you know you can keep the car well maintained both in its interior and exterior, making extra sure you keep it safe from nicks or any cosmetic damage.
You Expect To Lease Another Car When Your Current Contract Ends
Whether you’re using the car for personal purposes or for your business, novated leasing Australia might be for you when you expect to lease another car once your current vehicle’s contract expires.
Keep in mind that there are pros and cons to leasing a car. Before you go for this option, make sure you have thought it over and that you’re sure all the pros you could ever think of outweigh all the cons. The key to making the best deal when leasing a car is to select the most reliable leasing company. Any good leasing company would put customer service on top of their priority, so pick one with a solid reputation. Furthermore, consider providing a large initial down payment. The larger your down payment is, the lower your monthly fees will be. Finally, commit to keeping the car until the end of your contract, unless you’re trading it in for another leased vehicle.
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