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 you decide to lease or buy a car, you should consider several factors. This article makes the process hassle-free for you by mentioning the cons and pros of leasing a car.
Benefits of Leasing a Car
Leasing a car may be the best decision to make 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 car for the period it depreciates. Other pros of leasing a car you should know include:
- You get a new ride and drive the vehicle in its best condition. Most vehicles on lease are new 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 costly vehicle than you could afford.
- When the lease expires, you drop the car at the dealer, and you 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 leasing 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 car picks dents.
Leasing a car is a good choice if you are not ready to buy a new car now. Whether you should consider taking a car loan or leasing a car 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 it challenging to save for a new vehicle.