Advantages, Disadvantages of Leasing a Car

Advantages, disadvantages of leasing a car

When it's time to get a different car, you have a few options. You can buy a new car, buy a used car or lease a car. There are some distinct advantages and disadvantages to leasing that you should consider before making a decision.

Lower payments

One of the best advantages to leasing a car is that it allows you to get lower payments. Car payments are usually double or even more what it costs on a monthly basis to lease the car. Many lease offers also include no down payment, so you might be able to drive off the lot with a brand new car for $200 a month with no money down.

Short term

Most car leases are either two or three years, which means you aren't tied to a vehicle for very long. Most new car loans are five years and many are even longer, which ties you to a car for a significant amount of time.

Warranty coverage

When you lease a car, it is covered by warranty for the entire period you have it, which means you won't have to worry about paying extra for anything beyond routine maintenance.

Mileage restrictions

Car companies want to be able to resell the car once your lease is done and get as much for it as they can. One way to do that is to keep the mileage on the car low. Most leases restrict mileage to 10,000-12,000 year, which makes leasing not a good option if you travel out of town a lot or have a long commute. There usually are stiff financial penalties for exceeding the mileage cap.

Essentially renting

When you buy a car, even though it depreciates, you still have an asset with some value after you've paid off your loan. Once your lease ends, however, you have nothing to show for it. To know more click this car leasing brooklyn.