Buying Or Leasing A Car

At times, we all fantasize about the car of our dreams. You stay in front of the TV and suddenly see an amazing car, what is more, the monthly payments are affordable for your budget .

You apparently, get excited, and think about the fun you could have while driving and socializing in it. However, your joy comes to an end when the advertiser announces that the price you just saw, is “a catchy lease offer”.

But why people tend to deem leasing “unattractive”? Usually, monthly payments are less expensive, you can, also, enjoy yourself with a new car every few years, and leasing a car takes less effort than financing for a car loan. Thus, why people seem so distant from leasing? Is it wiser to buy or lease a car?

In general, those who enjoy driving a new car more often i.e every few years, find leasing more attractive, and because payments are cheaper than buying a car, lessers get to drive cooler cars, then they could afford buying and owning. So, leasing have some advantages over buying.

Expenses are generally lower when it comes to the amount of down payment you have to put. Some Companies such as GM and Chevrolet have zero interest rate for leasing. Monthly payments are cheaper, and leases are easier to get. Maintenance costs are almost nonexistent, since the car warranties usually last for the entire period of leasing, which generally gets up to 3 years. Many experts, as well, suggest three year leases as more reliable.

However, be prepare for extra expenses. Insurance companies have higher rates for leased vehicles. In some cases,leasing a car requires a down payment, that you have to pay each time, usually every three years you get a new lease.

In addition, when you turn the car back, after the contract is over, you are subjected to additional fees. This because, when a car is driven for a relatively long period, it reduces in value. The costs you might be required is determined by the amount of depreciation. If the leasing company concludes that the car you just turned back is overworked and over worn than a considerable charge may be subjected to you.

Kilometres, too, accounts for the cost. In a course of three years lease companies allow their clients 60.000 km over the leasing time. Extra fees between 10-15 cent per km, add up. If, for example, you have overdone 5.000 more than your lease limit, you will be paying 500 dollars on top of that.

Hence, a more detailed observation should take place upon deciding to buy or lease a car.

Comments (1)

 

  1. preowned vehicles says:

    I believe anything above 2 or 3 cars/ yr requires a dealers license. The dealers license is not difficult or expensive to get.

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