The Pros and Cons of Leasing Your Next Vehicle
Having a car of your own or for any of your family members has become a bare necessity. In case you are wondering whether to lease your next vehicle, you might have a few questions about the process. While leasing can be more affordable if you need a temporary arrangement, it can also have its pitfalls. There are obviously many different positive and negative pointers that exist in leasing a car as compared to buying one. The following is a brief list of some of the pros and cons that you need to know before leasing your next vehicle.
Shiny New Cars
After every leasing agreement ends, you have the chance of picking out a new car that you want to get your hands on. Whether it’s a new model or a new brand equipped with all the latest features, the vehicle can be yours to drive. This obviously cannot be when you buy a car since it is already a huge investment to begin with.
Once your lease agreement or contract is over and done with, all you need to do is give back the car and the keys to your dealer and move on to leasing another one or maybe taking a break. There is absolutely no pain in this entire process, unlike the ordeals you have to go to while selling the car that you have bought. The entire trade-in process in leasing is extremely easy to carry out.
Lower Monthly Payments
A big advantage in leasing is obviously the affordability as compared to buying a car. Paying your monthly lease payment is less expensive when compared to the monthly car loan installments. This means that leasing can save you a lot more money.
Moving to the downsides of leasing, the biggest disappointment you can face is the mile restrictions that are imposed on the vehicle. If you are an adventure-seeking person or you simply need to travel longer distances at times, leasing may not be right for you. Whenever you lease a car, the dealer affixes a stipulated amount of miles that you can travel, above which you are liable to pay extra money with each mile. If you buy a car, this is never a problem.
Not Yours Entirely
Since you don’t own your leased car, you won’t stop making the monthly payments which in the case of buying, you will stop as soon as the loan is repaid and the car is yours in all its entirety. In the case of a leased car, it is important for you to always have a fixed income so that you can meet the payments at all times. Moreover, the car isn’t an asset which you can try and sell if your financial situation demands it. A leased car is more of a liability.
These are a few pointers that you must keep in mind if you’re thinking about whether or not you should lease your next vehicle since it comes with its own set of positives as well as negatives.