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.