The Pros and Cons of Leasing a Car
There have been a lot of advertisements lately about leasing your new car. The car buying season is about to begin and it is very profitable for the dealer to lease new cars rather than sell them outright. Here are some pros and cons to leasing a new car.
PROS:
You can lease a new car fairly easily if you don't have the best credit, or if you don't have the down payment for a new car. Therefore, if you lease a car, you can get into it with less initial cash outlay.
In some lease agreements, you can work in a package for maintenance and possible repairs
It's easier to get warranty work done because the dealer has a vested interest in having the car maintained.
You might also be able to work in a "buy" policy at the end of the lease.
Leasing may be a tax advantage especially if you have an occupation in which you might be able to write off expenses.
CONS:
Most people lease a car for three to five years and end up paying far more than the purchase price.
Most leases require that you sell your current vehicle by yourself. You may receive a low "trade-in" price. If you have a used car to get rid of, it can be a real hassle.
There are usually very strict requirements as to the amount of miles you can put on a leased car. Quite frequently, those who lease a new car end up buying a used car because it costs less than having to pay the penalty price for going over the agreed amount of mileage in the lease contract. It has happened that some people end up storing their leased car because it was more cost effective to buy and drive a used one, while still having to pay the monthly lease payments.
Some leases state that the car cannot be shared. You may not be able to lend it to Uncle Joe to go to his daughter's graduation.
At the end of a lease, that shopping cart dent in the fender or that small chip in the windshield all come into play. Also, many times you must have new or almost new tires on the vehicle when you return it. The dealer will want it to look very close to the way it looked the day you picked it up.
At the end of the lease, you have no equity built up, where as, if you had purchased a car, it would be an asset to you.
Check out the used car dealers in Apalachin. You will find reputable
people willing to go the extra mile to help you purchase a vehicle. Compare
the price of leasing a car to buying a new or nearly new vehicle. You do
not need to go deeply into debt to own a quality car.
Next Month: Tips on buying a car - what to look for and what to expect from your dealer.