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