Getting a new car is a big move for everyone. But don’t rule out the option of leasing, here are the benefits and drawbacks of it.
Low Up-Front Costs
Most lease deals don’t have any up-front costs for you to pay, and if they do have any, they’re usually very low. This is one of the greatest benefits of leasing a car. When you buy a car you instantly see that money drain from your account, but not when you lease.
Therefore, you don’t feel like you’ve spent much money. Of course, you’ll still have to pay installments each month, but spreading the cost out can make your finances feel much healthier.
You Get a Car You Wouldn’t be Able to Afford to Buy
One thing’s for sure when it comes to leasing; you get a better car than you’d be able to afford if you were buying instead. That’s because the cost of buying is always more than the overall amount of money you pay to lease.
This is what attracts a lot of people to leasing for the first time. It offers them the chance their dream car every day of the week, but without having to pay the cost of buying it.
Little to No Repair Costs
Because lease hire cars are new, most of them are covered by a warranty. This means you won’t have to pay any of those costly repair fees if the worst does happen, and damage is sustained to the car.
One of the biggest drains on the finances of car owners is repairs, so to have them completely taken away is a big bonus. It’s just another reason why leasing is a good option for those on a budget.
Your Mileage Might be Restricted
There are rules that are imposed on you when you lease a car, and that’s one of the biggest drawbacks of leasing rather than buying. You will probably only be able to drive a certain, agreed upon number of miles each month.
You’ll usually be restricted to roughly 15,000 miles per year in total. There are options to have more miles, but you have to pay for the privilege so keep this in mind.
You Have to Look After the Car Carefully
Any big damage that’s done to the car will likely be covered by a warranty as mentioned above. But the pressure is on to make sure that you keep the small things in good condition.
That means you have to be careful not to let any wear and tear show on the interiors. If you do cause minor damage, there will be excess charges and fines to pay.
There Are Charges for Cancelling the Lease
If you cancel the lease deal before it expires, the dealer will be able to charge you money for the inconvenience caused to them. This is why you need to think very carefully before you sign the papers.
Leasing might seem like a smaller commitment than buying, but it’s still a commitment, and there are consequences for failing to fulfill it.
Leasing can be a great option if you’re looking to get a good car on a small budget. But there are drawbacks, so think carefully.