Buying a car is an expensive long-term decision. If you are not in the market to purchase a car, you may consider leasing one instead. if If you are considering leasing a car, you must take into consideration what advantages and disadvantages accompany this decision.
Here are some key points to consider when deciding if leasing a car is right for you.
Benefits of leasing a car
Leasing a car is an excellent option for someone looking for a short-term commitment
- No large down payment: Leasing a car gives you the ability to get a car without having to make a huge payment upfront. If buying a car in full is something you are not able to do financially, leasing a car can be a great option.
- No long-term commitment: Leasing a car will usually only last for a few years. This gives you the freedom of not having to commit to a single car. Avoiding a long-term investment can be beneficial because you can always be driving a newer and nicer car without purchasing the car in full.
- Warranty coverage: Most leased cars will come with a warranty. This can save you a good amount when it comes to maintenance expenses.
There are many benefits to leasing a car. However, there are many limitations as well when it comes to leasing a car. Weighing out the pros and cons of leasing a car is important to make the best decision when searching for a car.
Disadvantages of leasing a car
Although leasing a quality car seems like an ideal choice, it has its drawbacks too. Here are some disadvantages to consider if leasing a car is worth it.
- Mileage limitations: A lease will usually come with a limit on the number of miles you can put on the car. If this limit is exceeded, there will be fees based on how many miles extra you’ve driven.
- No refund or cash back on mileage: You will have a set limit of miles you can drive in a leased vehicle. If you do not utilize these miles, you will not get any money back for the miles.
- Maintaining the car: The condition the car is given to you must be maintained upon returning it. Any normal wear and tear must be repaired and you must keep up with maintenance requirements.
- Difficult to terminate lease: If you want to end your lease early, there will usually be high termination fees you will have to pay. These can be as high as the remainder of your payments, making it irrational to terminate your lease.
A lease can be difficult for someone to get if they do not have excellent credit. If you are looking to buy a new car but have less than perfect credit, CrediReady can help.
Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!