Car leasing is an option that many people choose over buying a car. Depending on the buyer’s preference, it can be a better option, and it usually comes down to financial mathematics. Following are some of the benefits and drawbacks of this choice.
Understand what a lease is, first of all. It is a contract that outlines the lessee’s payment plan and the condition of the vehicle that is to be maintained for the term of the contract. The car is returned to the dealer when the term of the contract expires.
Being able to temporarily afford a luxury car is a benefit of signing a lease agreement. Luxury vehicles or imports can be very expensive to own over a long period of time, so a driver can afford more in the short term. Another benefit is that the car is new and under warranty.
When a lease is up, the driver returns the vehicle to the dealership. There it can be purchased for a previously negotiated price, or a new contract can be signed for a different car. It is very important that the contract be followed to the letter so that extra fees are not incurred for excessive mileage or body damage.
Ownership of a physical asset is a benefit of buying a car that people don’t get with leases. When a lease is over, the lessee is left with no collateral like they are when a lien is lifted. This is one of the largest drawbacks of car leasing for most folks.
For most people it is just a matter of what makes most sense financially. Down payments, taxes, and tags must be considered along with the monthly payment. Many dealerships offer low or zero percent financing to purchase a car, so while it may require two or three extra years of payments, a shopper could own the vehicle for only a little more than the terms of a lease. However, car leasing can be a reasonable choice when the costs are considered carefully.
Car leasing offers an economical and sensible alternative to a car purchase. You can review the information about rates and styles by visiting the website at http://www.lease4less.org.uk/ .