Pros and cons of leasing a car

May 21st, 2020 by

Should I lease my next vehicle instead of buying it?

Leasing a car means that you pay a regular fee for the use of your vehicle. It can get confusing, as some people also pay regular fees for the car that they are buying, not leasing, but there are many other differences. Keep reading below to learn more about the pros and cons of leasing a car.

Two pros of leasing a car

Leasing a car can be cheaper than buying a car

In many situations, leasing a car can actually save a person money. Leasing almost always will save you money up front because you won’t have a large down payment. Over the course of several months, leasing can also be the cheaper option, with lower monthly payments usually and no sales tax fees.

When you lease a car, you can always have the latest model

With leasing, most dealerships will let you upgrade to the latest car models as they come. If you like a frequent change of pace, and like trying out new things, then leasing will ultimately be a better choice for you.

Two cons of leasing a car

In the long run, leasing can be more expensive than buying a car
Leasing should save you money at the beginning of your contract, but if you do it for many years, you may be losing out on money. This is because people who buy their cars have the option to resell them, and with leasing you can’t resell your vehicle. Also, leasing may have other fees associated with it, such as fees for driving excess miles over the agreed amount, fees for damage to the vehicle, and fees to cancel a lease early.

Leasing never gets you the satisfaction of owning a car

Probably the biggest drawback of leasing is that you will never own your vehicle. No matter how many months you drive it for, it will still be the property of the dealership that you lease from. For some people, this alone can be a deal breaker.

Posted in Finance