Lehman Leasing Wants You to Know the Advantages and Disadvantages to Leasing
What Are the Advantages of Leasing a Vehicle
Leasing a new vehicle has become a lot more popular recently than outright purchasing a brand new car. There are pros and cons to the decisions, and here at Lehman Leasing we want you to have all the information before coming to a conclusion.
One of the main advantages to leasing a vehicle is you will be driving the car in the prime of its life. If you lease a brand new vehicle, you can hope to expect very little mechanical or structural problems. The car you choose to lease is often covered by a manufacturer’s warranty if you do happen to run into any issues. You’ll also be riding in style, as you can probably lease a higher priced and better equipped car than you might be able to outright afford.
Your monthly payment will usually be lower because you did not take out a loan, and do not have to pay back interest and principal at the same time. And the best part? Whenever your lease is over all you have to do is drop it back off at the dealership, not having to worry about value depreciation or re-sell value.
That Sounds Great, So What are the Disadvantages?
Ultimately, the most important issue with making the decision to lease is how much you get for your money. If you constantly lease car after car, you will always be paying a monthly payment. In the long run it is usually cheaper to purchase a car, pay it off, and drive it into the ground. Lease contracts also specify a certain number of miles you’re allowed to put on the vehicle. If you go over this limit you will have to pay a penalty for every additional mile you drive. You are also required to keep the vehicle in good condition, and can be penalized again for any damages.
Early termination penalties can also be fairly costly if you run into a bad financial situation. Here at Lehman Leasing we advise that you have a long discussion with your dealership sales associate and also speak with their financial experts. There isn’t a really clear answer as to what is the better choice – it all depends on your current financial situation and what you are most comfortable with. So there you go! Know you know the basic advantages and disadvantages to leasing a vehicle. Now you’ll be much more prepared with questions at your chosen dealership.