When you lease a vehicle, there are a lot of facts you need to know. Without having all of the terms and conditions, you could cost yourself some money. Once you compile all of your data, you will be able to see the advantages and disadvantages of leasing. You will also be able to compare leasing to buying an automobile to see which is the most cost effective.
One of the components that go into the leasing agreement is the number of miles you are able to drive per year. The standard leasing agreement will allow you to drive approximately 12,000 to 15,000 miles per year. When you have exceeded the allotted number of miles, you will be charged a fee for every mile you are over. If you travel 25 miles, one way, to get to work, five days per week, leasing may not be for you. This will put you at 12,000 miles per year, without factoring in any other driving requirements.
Leasing is becoming more costly. In the past, people would lease automobiles as a way to save money. Someone could lease a huge luxury automobile for three years and have an affordable payment. A lot of dealerships have gotten away from leasing due to the cost, and more will follow suit in the very near future. In the past, automakers were subsidizing leases, making them more affordable. This practice has come to a halt.
When you lease your car, there is non-routine maintenance that you will be responsible for. Some of these repairs can be very costly. Too many repairs and expenses can make leasing very unaffordable. Review the lease agreement to see what your responsibility is concerning repairs and maintenance.
After the leasing period is over, you do not own the automobile. One of your options is to turn the automobile in to the dealer and lease another vehicle, or you can purchase a vehicle. The end of a lease always leaves you with choices to make pertaining to another vehicle. If you purchase a car, you won't have a trade-in because you leased a vehicle.
When you sign up for a lease, you are locked into a three- or four-year contract. If you break the lease agreement before the time expires, you will have to pay an early termination fee, which could be a significant amount. Make sure you are able to stay with your agreement for the entire term before signing up for a lease. Find out how much the termination fee is before you sign up for a lease. See if this is something that you can afford to pay or want to pay if the lease agreement is terminated.
A lease may require a down payment. If you have bad credit, the amount of your down payment could be increased. Early termination of the lease agreement means you lose your down payment.
If you like driving a new car every two or three years, then leasing may be your best option. When the lease is done with, you can continue to lease year after year. This gives you the opportunity to drive a newer style of car every couple of years.
