A car lease is basically a long term rental agreement that offers exclusive use of a car at an agreed period of time at a fixed monthly payment. With car leasing rapidly gaining popularity in countries like the UK and USA, many drivers are now opting to lease a car rather than buying a new one. There are many reasons why people prefer to lease a car but most of them come down to the expense of saving money. However, the question whether leasing a vehicle is right for you is hard to answer since it all depends on your preferences and lifestyle.
Here are the pros and cons of leasing a car: PROS- The down payments, if any, are generally small
– Monthly payments are lower.
– Ability to drive a better car for less money.
– Lower repair costs – No upfront sales tax fees. – No depreciation concerns. CONS
– Higher insurance premiums. – You do not own the car after the lease thus no pride in ownership. – Your millage is set to a limited amount.
– Leasing in the long run is more expensive as opposed to buying a car and driving until its wheels fall off.
– The wear and tear charges are added up and paid upon lease termination.
– The lease contracts can be very confusing.