Reasons To Lease A Car

Eventually most of us will at some point come to this decision, to finance or to lease a car? There are many pro reasons to lease a car. Below are the benefits and set backs of leasing a car.

Why Lease A Car?

  • The car is brand new, which means no problems. No need to worry about any repairs but regular oil change and occasional flat tire. Why drive a used car, when you can drive a brand new one?
  • Once the lease contract is up you can choose another brand new car, no need to say with the same one.
  • Affordable monthly payments, usually the lease payments are lower than the financing payments.
  • Save on repairs and maintenance, driving a new car means minimal expenses on repairs.
  • A car only decreases in value over time, therefore there is little reason to own one. Once the lease is up, you have a choice to lease another brand new car without worrying how much it will sell for, how long it will last, repair costs etc.
  • If you fall in love with the car you always have a choice in buying the car out when the lease is up.

Cons Of Leasing A Car

  • Similar to renting a car, the monthly payments are going to a dealership and not towards owning the car
  • There is a contract, which cannot be forfeited, so you’re stuck with the contract for x amount of years regardless of your financial situation changes – the contract CAN be assigned to someone else
  • Some leases are very expensive, especially for high end cars – bargaining with the dealership could get you a bit of  a better deal

 

Category: BorrowingDay to Day BankingLoansTips and Advice

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Article by: Anna Suzdenkova

Employed in the financial sector for over 7 years. Held various roles including financial advisor, auto claims adjuster and manager of customer service. Attained an accounting degree with Honours. Mutual fund licensed. Passionate about helping people. Forever an optimist, positivity is the key to a happy life. Enjoys helping people decipher the banking world and use it to their advantage!