If you have pondered the idea of leasing your next vehicle, you’re not alone.
Leases are increasing in popularity year over year.
Deciding whether leasing your next car is right for you depends on the pros and cons of leasing.
Before you sign your next lease, here are some things you should consider:
The Pros of Leasing a Car
Leasing a car is great for those that are looking for the latest and great in terms of technology.
Leases also allow you to drive a well-optioned vehicle that you may not have been able to purchase all in cash.
Once your lease is finished, you simply return your vehicle and repeat the same process over again.
- Long-term commitment not required – Most lease terms range from two to three years, meaning that you will always have the chance to drive the latest and greatest cars available.
- Pay less than financing – With a short-term lease, you only pay for the used portion of the car, which is typically based on the overall depreciation of the vehicle. Monthly payments for leases do tend to be lower than financing an auto loan.
- Down payment – When you purchase a new or used car outright, most lenders will require a down payment of 10% or more. You can save and invest the money normally used as a down payment when you lease a vehicle.
- Coverage – Many consumers also enjoy the benefit of warranty coverage when leasing a vehicle. Typically, the dealership will provide all the maintenance and repairs the car needs.
The Cons of Leasing a Car
While leases do offer many benefits, there are some drawbacks
- Limited Mileage – Almost every leasing agreement includes a clause regarding mileage limits. If you go over the allocated annual mileage, you could be charged anywhere from $0.25 to $1.00 per additional mile
- Condition – Almost every leased vehicle is subject to being sold upon return to the dealership. Because of this, leased vehicles must return in good shape. Scratches and chips can cost you big when it comes time to turn in your lease.
- Lease life – If you never purchase a car and keep decide to release, you may be stuck in a cycle of expensive car payments
Ultimately, it is up to the consumer to decide if leasing a car is right for them. 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!