Are you considering leasing your next vehicle but aren't sure if it's right for you?
Have no fear, we've gathered up some pros and cons for leasing a vehicle that will help make your decision easier.
Pros:
Lower monthly payments: Car shoppers are always looking to cut costs and often times leasing a vehicle will result in a lower monthly payment.
New car every few years: If you're interested in the latest technology and newest vehicles, leasing allows you to stay up to date with a more current model.
Often no down payment required: Dealerships will often offer attractive lease deals that require little to no down payment.
Under warranty: Avoid auto repair bills with little to no repair costs due to factory warranties.
Cons:
Mileage restrictions: Limited mileage can be a significant drawback in leasing a vehicle, especially the associated costs for going over your allotted amount.
No equity: After your lease is up and you've made all of your monthly payments, the vehicle goes back to the dealer and you're back to square one.
Pay for damages/repairs: Anything outside of the factory warranty is your responsibility. When you turn your lease in, it's possible you could face charges for any dents or scratches that will need to be repaired before the dealership can re-sell the vehicle.
Will always have a car payment: Leasing a new vehicle every few years means that monthly payment never goes away.
Can be costly to terminate lease early: Fees to get out of a lease early can be very high.
Each situation is unique, and leasing a vehicle can be a cost saving technique. It can, however, also be a costly option in the end. Be sure to do all of your research before you commit to leasing a vehicle--including comparing new purchase payment options to what a lease vehicle would cost you.