Having a vehicle is an important part of everyday life to get to work and go about daily activities. There are two main options out there when deciding to get a car: leasing and purchasing. Purchasing a car can have its benefits, but it also puts you in a long term payment plan that can cost a lot up front. The other option, leasing, can give you the same benefits of having a car but not give you the limitations of purchasing a car.
What are some of the pros of leasing a car?
- Always have a new car
◦When you invest your money in buying a new car, you are going to be stuck with the car for a long time, so you will be driving an older vehicle at some point. With a leased car, you have it for a limited amount of time, so you always will be driving a newer model vehicle.
- Little to no down payment required
◦Most cars take a large down payment, while most lease car situations offer either a much smaller or even no down payment at all. This can make it much easier to get a car when you need it.
- No long term commitment
◦Buying a vehicle can put you in a long term situation where you are making payments for years before you own the car outright. Leasing a vehicle puts you in a short term lease of your choice so that you can have a car for as short or as long as you need it.
What are some cons in leasing a car?
- Some companies do not allow customization
◦ If you are going into a specific location to find the best lease car deals in your area, there will be specific vehicles for you to make a choice from, but you will not be able to customize the vehicle.
- No equity in the vehicle
◦ When you purchase a car and make monthly payments, you are doing so knowing that eventually you will own the car fully. With a lease, you are making payments, but you will never own the car. At the end of the lease period, you will be expected to return the car, and the money you have spent on lease payments has pretty much been paid to rent the car.
- Pay a fee for terminating the lease
◦ Just like an apartment that you have leased, leasing a car has penalties for ending your lease period before the lease terms are up. There may be certain extenuating circumstances included in your lease terms that allow you to break a lease, but it is important for you to read that information before making your decision, because fees for terminating a lease can be high.
The first step to finding the right fit for you is to look at the best lease car deals available in your area and decide what type of vehicle you are looking for and what these businesses have to offer you in that area. After you find vehicles that suit your needs, look at your budget and determine which choice is the right one for you!