List of Pros and Cons of Leasing a Car
The purchase of a motor vehicle is a typically simple process. A person will lend the money they need from a financial institution and set up a monthly payment plan that works for both parties. However, leasing a car is a slightly different process that has its advantages and its disadvantages.
Before you decide to lease a vehicle, be sure to investigate these pros and cons, so that you can make the best possible decision. Read on to learn more about the upside and downside of leasing a new motor vehicle.
List of Pros of Leasing a Car
1. No Down Payment
While this is not a guaranteed certainty, depending on where you choose to lease the vehicle from, the typical car lease requires the customer to put no money down up front. For people who need a vehicle quickly and do not have a great deal of cash to spend on hand, this is a major plus.
2. You Can Be Fancier
Since the financial restrictions are not as great, a person is able to jump up a class and lease a vehicle that they may not have had the funds to purchase outright. Leasers who have a family to take care of gain access to a vehicle that is better equipped to meet their daily needs and safer to drive.
3. Warranties Cover Any Potential Mishaps
Consumers who lease a vehicle not only get to drive a much better make and model of car, but they are also covered by manufacturer warranties. Accidents have always been known to happen, so it pays to have yourself covered, just in case. Having a late model car that’s covered by the manufacturer provides valuable peace of mind.
List of Cons of Leasing a Car
1. Higher Monthly Payments
When you purchase a car outright, you are able to enjoy much smaller monthly payments than you would if you lease the vehicle. Ownership entails paying off the entirety of the vehicle’s cost, whereas leasing carries a different form of financial responsibility.
2. Can’t Make Amendments
Those who lease their vehicles are unable to make any sort of modifications to them as they wish. They are forced to keep the car in the same condition as when they leased it or risk a harsh punishments from the dealership where they received the vehicle. That means no new paint job or adding any sort of bells and whistles.
3. Costs More Over Time
A car lease is much less expensive than an outright purchase in the short run, as the customer is able to keep the down payment in their pocket. But, a lease tends to cost much more than a loan receiving from a reputable financial institution, due to a hike in the associated financing charges.