Are you in the marker for a new car? Have you ever thought of leasing a car to purchasing one? Do you like the idea of having a new car that you can drive off the lot every two years? There are pros and cons for each and you shouldn’t make your decision based on the initial cost or the long-term commitment.
Buying a car is different that renting an apartment or buying a four-bedroom house. Situations in your life may help you determine what you exactly need. By researching lease vs. the purchasing of a car, you can get a better feel of what you need.
Leasing
When leasing a car, the car is never really your own. You only have it in your possession for a few years then you can take it back give it to the dealer and drive off with a brand new car. You never have to worry about any mechanical bills; the dealer has a warranty on it. You never have to worry about salesman hounding you in the car lot or all that stressful paperwork in purchasing a car. Some people feel like this is throwing your money right out the window, but others see it as a dream to have a brand new car every two years or so.
Pros for Leasing
When you lease a car your monthly payments will be what the amount of the car is worth for as long as the lease; so you monthly payment will be smaller. Purchasing a car you are paying 100% plus some of what the car is worth, for as long as you are financing it, no matter what the time frame you chose to keep the car.
While choosing to lease a car you are also choosing to have the dealer take care of all the mechanical problems that may happen. The dealer is responsible for any replacement parts for the duration you have the car. Most leases will offer a time frame like three years or 36,000km, which ever comes first, but the coverage is always the same. By the time your lease is about to expire you have already driven off the lot with a brand new car.
If you are the type of person that follows the automotive industry, you know that the market is always changing and upgrading. So why settle on the same car year after year, when you can change to an upgraded style or get a totally different car. Leasing gives you this options every few years and you have no responsibility once you turn the keys over to the dealer. You are open to the whole automobile market to choose what you want.
Cons for Leasing
Leasing seem like you are wasting your money. You are pouring thousands of dollars into something that isn’t your and never will be. What do you have to show for your money, absolutely nothing besides the memories of having that car! Leasing a car will empty your wallet for nothing in return.
Leasing a car also means you are bound by the rules of the dealer. There are fees that will be added on for damage done to a leased car. You have to be careful in parking lots that people don’t open their doors into your car. This means parking far away from the main body of the parking lot. Being worried that someone will hit the car when it’s parked on the side of the road. This can be too much for some people. It’s just to stressful and not worth the constant monitoring.
You also have to take care and watch your mileage. If you exceed your quota for the lease period, charges will incur when you return the car to the dealer.
Insurance Sky High
Be prepared to pay higher insurance rates for a leased car. Insurance companies seem to think that leased cars are not generally taken care of as if you were financing a car. Some people think insurance companies are penalizing leasers for their decision to lease a car. Your best bet is to talk to people that lease their cars and see if they like it and will do it again. These are just a few of the pros and cons when it comes to lease vs. purchase. If you do decide to lease your next car, read the fine print and if you have any hesitation about something you just don’t know if you can live with, don’t sign on the dotted line. Take your time and consider it some more.