Although, you may be in the same boat as what the average person out there is, and as such, leasing a new car can be your answer. However, before you just go out to lease your car, it’s important to consider some of the following facts.
Keep in mind, with any lease agreement there is limited driving, usually between ten and fifteen thousand miles per month. Once you exceed these limits you will be responsible for a mileage penalty at the end of your term. This can cost you a lot more as when you buy your car with a loan.
Leasing is a good option if you chose to drive a new car every 2 to 4 years. Once you decided that you would like to drive a new car every few years, the best length of time for leasing would be three years at a time.
It also provides you with payments monthly that are lower than buying with a loan. You basically only pay for the term you use the car, and normally you may look at a two or three-year agreement. The payments may be close to thirty percent less than financing your car.
There is not a lot of maintenance required on a lease car. This is because generally, they are barely used or new with low mileage. Frequently, the cars will still be under warranty of the factory and not in need of any repairs which can save you money for costly repairs.
Leasing means you get more value for money and you can drive a new or different brand every couple of years. This helps you to drive expensive cars that cost you less, as well as providing you with the benefits of upgrading to an exceptional driving experience.
If you, pile-up extra mileage more than what was negotiated in your lease agreement, it may cost you a lot of money and eat into your savings. It’s better to arrange before the time for extra mileage on the contract if needed.
Insurance might be expensive on a lease car as some leasing companies may require extra coverage.
Terminating a lease agreement early is not a good option because most leasing companies design the contracts in such a manner to prevent, or discourage early termination. If you are not sure if leasing is for you, take a short term lease and extend it if you are happy with your car.