Pros And Cons Of Leasing A Car
In order to get the best car lease deal, it is important to have full and detailed information about the benefits and the disadvantages that are involved when leasing a car.
Low monthly payments
As opposed to having to make huge payments for car loans, leasing a car makes you pay less monthly. The tax advantage is also available for business owners under lease agreements.
New car every few years
Most leased cars are usually based on terms that allow you use the car in a few years giving you the opportunity to drive a new car every few years with little or no hassle.
You drive good cars
Leasing offers you the opportunity to drive good cars in their trouble free years. And you get to drive leased high-priced and quality car more than you can afford.
No need to go through the stress of selling
When you want a new car, you are saved from the hassle of finding a buyer or trade-in value when you intend to sell the car.
You pay more in the end
Most lease agreements usually require you to pay more when compared to buying a car for yourself in the long run.
Limitations on mileage, wear and tear etc.
Most car lease agreements usually have clauses that relate to wear and tear, mileage and others, it may become a burden to keep up with the agreement and you may incur penalties.
Monthly payments go on forever
If you keep leasing cars, monthly payments go on forever and it may become difficult to own a car during periods of economic hardship or retirement.
Ending Lease agreement before time is costlier
In case of scarcity of funds, if you intend to terminate the lease agreement, you may end up paying huge sums to end the contract as opposed to the selling of your car and getting more funds if you own a car.
Cost of maintenance is higher
A leased car has to be returned almost exactly like it was taken away from the showroom, hence it requires a higher cost to maintain a leased car.
If you intend to get a car to meet your immediate needs with low monthly payment a car lease would be the best option for you, only be sure you can keep the terms of the agreement.