Benefits and Drawback of Leasing a Car

Should you buy or lease a car? If you know nothing about the best engine oil and car tires, you are not the best person to answer this question. When you are looking forward to taking a long off-road excursion with your family, you can decide to lease your favorite drive and save some money.

Before deciding to lease or buy a car, consider several factors. This article makes the process hassle-free by mentioning the cons and pros of renting a car.

Benefits of Leasing a Car 

Leasing a car may be the best decision if you are on a tight budget. The reason is the monthly payments are a bit lower since you’re not paying back the principal. The principle of leasing a car is that you borrow and pay for the vehicle for the period it depreciates. Other pros of renting a car you should know include:

• You get a new ride and drive the vehicle in its best condition. Most vehicles on lease are the latest models with little or no regular maintenance required.
• The new car may still be on manufacturer warranty for regular maintenance and free engine oil.
• You can drive a more costly vehicle than you can afford.
• When the lease expires, you drop the car at the dealer and are good to go.
• It comes with some tax advantages for business owners. There are no upfront sales tax fees on leased cars.

The Drawbacks of Leasing a Car

Leasing a car may appear more attractive to most people, but it also comes with some drawbacks you should pay attention to. Here are the downsides of renting a car:

• You drive a rapidly depreciating car, which means leasing a car will cost you more than an equivalent car loan.
• The monthly payments for a leased cargo on for the period you have the car. On the other hand, if you opt for a loaned car, you can keep it after the last payment is made. This makes leasing a car an expensive way to drive.
• Leased cars come with a mileage limit. This means you cannot drive some miles when on a leased car. The dealer charges an extra coin for an extra mile but doesn’t give credits for unused miles.
• You pay for wear-and-tear if you don’t maintain the vehicle in good condition. Therefore, if you share a leased car with your family, you should be ready to pay more if the vehicle picks dents.

Final Thoughts

Leasing a car is a good choice if you are not ready to buy a new vehicle. Whether you should consider a car loan or renting a vehicle depends on your income and plan.

Although leasing a car is not for most people, you may consider it if you don’t want to deal with a car loan or find saving for a new vehicle challenging.