Benefits of Leasing a Vehicle
For those considering a new automobile, it can be difficult to decide which vehicle to choose and whether to purchase or lease. With the rate at which cars are depreciating in value, due to a lackluster economy among other things, the advantages to leasing a car are only gaining more validity. It is well known that the moment a new car buyer drives their vehicle off the lot, it loses a substantial amount of value. Furthermore, leasing can provide more flexibility than ownership and also may require less up front money upon taking possession. Leasing a vehicle is clearly an interesting option and one worth exploring before heading out and purchasing a new vehicle.
Learning about Leasing
Leasing vs. Owning- Leasing a vehicle may be a great alternative to those looking to acquire a new vehicle. Leasing can be useful in providing lower monthly payments, often times no down payment and also fewer maintenance headaches. Because of these advantages, leasing may prove to be a better decision for some than buying a vehicle. The added flexibility that comes with the leasing option is what draws many shoppers to this option.
Lease Terms- Lease terms can vary dramatically. A good way to go about leasing a vehicle in order to keep maintenance costs low, is to choose a lease term that coincides with the manufactures warranty on the vehicle. By doing this, you are able to avoid being forced to fix costly issues that may arise as the car will still be covered under warranty. It is important to know all of the terms that come with leasing your vehicle as there can be large penalties assessed for excessive mileage and early lease termination. Excessive wear and tear penalties can also be assessed, so knowing the characteristics that warrant such fees is important when deciding whether to lease or buy your next vehicle.
Early lease termination- Early termination of a lease can be extremely expensive. If at all avoidable, one should attempt to do so at all costs. Because of the value lost when cars are used, dealerships are keen on making sure that the lease term is fulfilled and that it is cost effective to make the leasing decision. For this reason, dealerships will often impose large penalties to protect their financial position in holding the vehicle, should a lessee decide to terminate the lease.
Excessive mileage-This can be a huge cost to those who may not be paying full attention to the vehicles mileage and the terms of the lease that warrant only a specific number of miles be put on the vehicle. If the lease holder puts too many miles on the vehicle, there will be a per mile penalty assessed which can end up costing a fortune.
Excessive wear and tear- Vehicles that experience excessive wear and tear during the lease term are subject to fees and penalties. A certain amount of wear and tear is warranted, however it is important to view the terms that describe “excessive” in the lease and make attempts to keep the vehicle out of this category.
Learn more about Leasing Vehicles
- Car Warranty Benefits
- Benefits of Driving a Hybrid Car
- Car Lease Vs Car Loan
- First Time Car Buyer Financing
- Insurance Discounts for Hybrid Owners
We hope this article helped you learn more about the benefits of a vehicle lease