How To Lease A Car – Advantages and Disadvantages
Are you looking for a car that is dependable and affordable? When it comes to cars, there are many decisions to be made. One of these decisions is whether to buy a vehicle or lease one instead. Let us look at how to lease a car and the factors involved and you decide what is best for you!
Buying vs Leasing
When you buy a vehicle, you own it, or at least that is what you hope to achieve. But remember that if you did not finish paying for it, then it really still belongs to the lenders and not you. And if you are the type of person who wants to trade in their car after 3 to 4 years, then you are similar to many buyers as the average is usually three and a half years. Then financing a vehicle would be cumbersome as you would probably lose money on it when you are trading it in before your financing term is over. Keep in mind that you might finance a vehicle for 36 months (that is 3 years), or maybe 60 months (that is 5 years). So if you think that you are going to need another vehicle instead of the one you are buying now before the financing term ends, then you might be better off leasing. So you would need to understand how to lease a car.
Let us start with how to lease a car and the advantages involved. When leasing, the vehicle is not yours but at the end of the lease, you do not have to worry about the car running out of warranty or if it gets too old. You also do not have to worry about getting bored of the vehicle as you can start a new lease with a newer looking vehicle. But most importantly, when leasing a vehicle, the monthly payments are often half of that of financing similar vehicles.
Another advantage of leasing is your ability to use the leasing expenses as tax deductions. This does not only include the monthly payments, but also includes the insurance costs and any necessary maintenance costs that you had to pay for.
Keep in mind that you can also do what is known as “leasing with the option to buy.” This means that at the end of the leasing term, you can choose to sit down with the representative and calculate the price of the car minus the amount of the payments thus far and pay the difference and start owning the car at that point. This is a great option for people who fall in love with their vehicle after leasing it and choose not to give it back.
Of course the main one when searching for how to lease a car is that you will not own anything after paying monthly payments. There is nothing to show for the money you have been sending to the lenders. Another one is the mileage limit that the leasing dealers put for you. So if you have a limit of ten thousands miles per year and at the end of the lease you have passed that limit, then you would have to pay fines. You can choose to buy-up to thirty-three thousand miles per year but that would mean more money to pay monthly especially because the warranty would cost more. There is also the issue of early termination fees but most people would not end the lease early as it is not that long so most people do not have to think about that.
Just make sure you research your options and see what fits you when you are searching for how to lease a car.