Has your car been looking a little worse for wear as of late? Does it seem like it spends more time in the mechanic shop than out of it? Are the repairs adding up quickly and you find yourself asking why you’re sinking so much money into an old car? If you’ve answered yes to these questions, there’s a good chance that it’s time to purchase a new vehicle. And while you may be focused on what type of car to get next, you may also want to give thought as to whether leasing is a good option.
Here we’ll take a look at some of the pros and cons of leasing a car instead of purchasing one.
The Payments Will be More Affordable
When it comes to leasing vs buying cars the top benefit has to be the fact that monthly payments tend to be quite a bit more affordable. Leasing a car means you’re not paying the total value, you’re actually only paying for the depreciation of the vehicle. When the lease expires you will return the car, or you can purchase it for the amount outstanding. In most cases, people tend to prefer to turn in that vehicle and start fresh with a brand new vehicle and a new lease term.
Your Warranty Won’t Expire
Another big pro is the fact your warranty likely won’t expire during your lease term. Because people tend to lease a car for two to four years, most models and makes will have a valid warranty for the entire duration of that term. That can offer real peace of mind and save you from expensive repairs should you own a vehicle past its warranty expiration.
Maintenance Will Be Minimal
This ties in nicely with the next pro, which is the fact maintenance will be minimal. Because you’re driving a brand new vehicle, the only thing you will likely need to deal with is routine maintenance like oil changes, the brakes (which may or may not be necessary), wheel alignment, and so forth.
You Can Drive a New Car Every Few Years
For those who love the idea of having a fresh new car to drive every few years, leasing makes complete sense. You aren’t tied to anything long-term, and you know in a few years you’ll be into a brand new vehicle again.
There Will be a Mileage Cap
As for the cons, there is the fact that your lease will have a mileage cap. This is a specified amount of mileage that if you exceed you will need to pay a fee on each of the extra miles. Typically, the average costs are pretty high, so you’ll want to ask about it before signing an agreement.
You Won’t Own the Vehicle at the End
Then there is the fact you won’t own the vehicle at the end of the lease. This can be a good or a bad thing depending on how you look at it. For many, they don’t want the hassle of owning a car as it ages and starts to become less dependable.
As you can see, there is plenty to consider when trying to figure out if a lease is right for you.