Leasing a car has its pros and cons, just like all other car financing options. Leasing a car is usually cheaper than buying one through financing. When leasing a car, however, you should consider more than just the payment. You should consider how long you intend to keep the car and how far you plan on driving it.
The pros and cons of leasing a car
The Pros of leasing a car
• You can upgrade often: A lease allows you to buy a new car every two-four years. Average car on lease Boca Raton FL length is 36 months (3 years). Leasing is an option if you are interested in a new vehicle.
• Lower monthly payments: Your monthly payment for a leased vehicle will be generally lower than that of a vehicle bought with financing. The same applies to the down payment.
• For the duration of your best car lease deals Fort Lauderdale FL, many new vehicles come with maintenance and repair coverage. The dealer or manufacturer may make repairs for free (but will not pay for damage caused by an accident). While your lease may cover all maintenance issues some leases may only allow you to have free oil changes. If you decide to purchase the vehicle, however, you will be responsible for all maintenance and repair costs after the warranty ends.
• GAP Insurance might be available: Some leasing companies offer GAP coverage. GAP coverage covers you in the event that your collision or comprehensive insurance doesn’t cover the entire pay-off value for your leased car, should it be totaled. This coverage should be verified with your leasing company. GAP coverage might not be available if your vehicle is being financed for purchase.
• Leases often include the buyout option, which allows you to buy the car at the end of your lease. This option may be available if your lease provides it.
The cons of leasing a car
Leasing a car has its downsides. These are some of the things to keep in mind.
• Limit on mileage: Leased vehicles can only be driven a certain distance before you are charged additional fees. The average mileage limit is between 10,000 and 15,000 miles. Extra miles can result in a fee of $0.10 to $0.50. For example, if you exceed your mileage limit by 100 miles, it could cost you $50. Many lease agreements don’t credit you for miles not used. You can drive your own car when you buy it. However, high mileage will depreciate your car’s worth regardless of whether you lease or purchase).
• Equity is not possible: Just as with a home purchase, purchasing a car gives you ownership over the vehicle. This can be used as a trade-in or to make cash. Unless you exercise your purchase option, you do not own a leased car.
• You could be charged extra for excessive wear and usage. Normal wear and normal use are acceptable. However, anything beyond that may result in repairs or fees. If you are considering purchasing the vehicle, excessive wear and usage may reduce its market value.
