The Pros and Cons of Leasing a New Car
Your best friend has just gotten a wonderful new car and is bragging about the great deal he got on his lease, but your father has always preached that leasing a car is like throwing away money. How do you get to the bottom of this issue in order to get the best deal? The best way is to examine all of your options before making your next vehicle purchase. The following pros and cons of leasing a new car will help you to do just that:
Positive Aspects of Leasing a New Car
Despite what many people have been told, leasing a car could prove to be a better option than buying in some circumstances. The following potential buyers may wish to seriously consider leasing:
• Drivers who have less than sterling credit and no trade-in vehicle
• Drivers who average less than 12,000 miles of travel in their car each year
• Drivers who hate thinking about and are unable to perform any maintenance
• Drivers who prefer an extremely low monthly payment
• Drivers with a great safety record who take great care with their vehicles and are not accident prone
Leasing a car means that you will always be driving an up-to-date vehicle, and this means that the car or truck will be equipped with the most recent safety features. People who do not have a large sum saved for a down payment can usually leave the lot with a new vehicle after paying only “drive-off” fees.
Negative Aspects of Leasing a New Car
While leasing is the perfect arrangement for some people, your dad may have been right about some problems with leasing as well. Leasing a new car means that you will have no equity the next time you plan to change vehicles. For people with poor credit, it may also mean that they will have to pay astronomical interest rates and would be better off opting for a previously owned vehicle. Any damages done to the leased vehicle could also be costly, even if these are just dents and dings obtained in the grocery store parking lot or one’s own home garage.
Each dealership has different conditions concerning their leases, and these all require a thorough reading to avoid any unfavorable terms. Most agreements include some type of penalty for turning the car back in early so it is important to carefully decide on the length of time the lease will cover and the model of car that is to be leased. Otherwise, dissatisfaction with the deal could result in further expenditures.
Leasing may be the best way to go for people who always stay close to home and like to keep their monthly payments low. It may also work well for people who have a tendency to trade cars quite often and for those who want the dealership to be responsible for all of the maintenance performed on the vehicle. Monetarily, however, most people will still come out ahead by buying a car outright.
The truth of the matter is that both your dad and best friend could have some excellent points. It is up to you, after considering the pros and cons of leasing a car, to make the right decision for your circumstances.
Guest writer Melanie Lewis writes for a site which has more details about leasing cars and offers advice on points to consider before signing on the dotted line.
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Category: Car Lease
I prefer to own a car rather than to lease a car. Owning a car gives me a freedom to sell it anytime if I want to dispose it. Additionally, I will earn money when I will sell my car.
Hi, Very nice post. Good to see that you mention both aspects of leasing a car. But as I know my self I do not have such amount to buy a new car and I know my salary is enough to handle the leasing car so Surely I will go for leasing a car.