Department | New Car Loans

Thinking of Leasing?

You have probably encountered many people who only lease their cars instead of buying. They are very happy with the idea of leasing, and it works out well for them. But is leasing right for you? Leasing has some strong pros and cons, and we will address both sides of the issue in this post. The information that follows will help you decide whether leasing is right for you.

Leasing Pros

If you think you will have trouble coming up with a down payment, then you might want to lease. Leasing deals often require less of a down payment than purchasing deals do. This is one of the most compelling reasons to lease instead of buy.

The same idea applies to monthly payments. Overall, you may find that your monthly fees are less than they would be if you purchased the car. The idea of leasing and saving money in the short term go hand in hand. A lower down payment and reduced monthly payments can really be helpful.

When your leasing deal ends, you shouldn’t encounter any problems. You do not have to sell the car or trade it in; all you need to do is return it. The dealership will take it back, and you will have nothing more to worry about.

Leasing Cons

With a lease, you never own the car, but you will always have a car payment. You will never enjoy the pride of ownership once you finish making the payments. Every month, you will have a car payment, but you will not be able to look forward to one day owning the vehicle.

Additionally, you will be locked in for the entire lease agreement. If you really like the car, this should not be a problem. However, if you find out too late that this car is not for you, that is when the trouble begins. Leasing agents may not let you out of the deal. If they do let you out, it will undoubtedly cost you a lot of money to do so. They will penalize you for not living up to your part of the agreement.

When you lease, you might come to specific terms about the amount you are allowed to drive. You might set a mileage limit. If you go over this limit, you will be subject to fees and charges. This really limits the freedom you have with the car. If you want to lease a car and drive it across the country, then you need to make sure you get a high mileage limit or no limit at all.

The dealer will expect you to return the leased vehicle in the same condition you received it. If you have trouble keeping cars in good shape, then you will be subject to fees and repair costs. In this case, you might be better off purchasing a vehicle, thereby saving yourself these additional costs.