The Pros and Cons of Car Leasing

Car leasing is definitely a lucrative option but before we understand the advantage lets take a look at what car leasing is. When you lease a car you have to pay a small down payment which is usually a percentage of the value of the car. You will then have to fix the duration for which you want to lease it and once that has been ascertained your monthly payment is fixed. This payment is the difference between the car’s current value minus its expected value at the time of the lease expiry. So your monthly payment is the sum of the interest and the total amount divided over the entire duration of the lease. If your credit rating is good it will not take you more than two days to get your new car. At the end of the lease period you can either purchase the car or hand it in.

Advantages:

Leasing is a perfect option for people who want to drive a brand new car for a really low price. One year leases are the most common which means that people can drive in a brand new car every year. And the timing is perfect because most new models are introduced in fall which means that you can get a new car for Christmas.

Most establishments that deal with auto leasing have the more upscale models which are always brand new.

If you buy your own car you are completely responsible for its upkeep and maintenance but most leased cars are new and covered by the manufacturer warranty. So, all you will have to do is take your car to the dealership and they will take care of most dents and scratches for you

The monthly payment is significantly lower, almost 30-60 percent less than what you would normally pay if you were to own the car. If you want to negotiate further on the amount you have to pay as the down payment or even the monthly payment you should consider trading your old car for the leased vehicle

Normally you would have to go through the rut of buying a used car and then selling it but not only is this hassle eliminated when you lease a car you also dont have to worry about the insurance because the dealer handles it for you.

Finally, most leased cars come with free gap protection in case of car theft or total loss due to an accident

Disadvantages:

Unfortunately a leased car cannot be included in your assets list because you dont actually own it.

You will of course have to incur a loss over the buying price when you sell an owned car but at least the balance is yours.

Not everybody is eligible for car leasing and you will need to check with the dealership beforehand

Leased cars come with fixed mileage which may pose a problem. Your lease agreement will usually include the mileage limit per month and any usage above this limit will be charged over the fixed monthly payment. To read more about this and virtual currency then visit the link in this sentence.