The Pros And Cons Of Leasing A Car
If it's time to get a new car, you may be wondering if leasing a car is a good idea. There are a lot of positive aspects to leasing a car, but before you sign on the dotted line there are a few things you should keep in mind.
Many people like the idea because it allows you to drive a new car every two to three years. Furthermore, most dealerships will take care of any major repairs when you lease a car.
However, you will typically spend more money in the long run if you continue to lease rather than buy a car. Although you may have lower monthly payments when you lease, you will never pay off the vehicle and become debt free as you would if you buy.
LeaseGuide.com explains that what you are paying for when you lease is the part of the car you are using during the lease period. So if a car is worth $30,000 at the beginning of your lease is only going to be worth a resale value of $25,000 after the lease, you will be paying for the difference, $5,000. A lot of people like this about leasing a car, plus when you leave you can often avoid fees associated with buying.
You should keep in mind that leasing a car sometimes comes with restrictions. For example, you may only be allowed to put a certain number of miles on the car during the leasing period. This may be a problem if you enjoy taking trips in your car.
Consider talking to a dealership and getting all of the facts about leasing in order to make the best decision based on your needs and financial situation.