Whenever someone brings up the possibility of leasing a car, usually most people nod their heads and say they would never do that. However, do you really know much about leasing? There are positives of leasing your next car, but there are negatives as well.
Here are some things you should think about before you buy or lease your next car.
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With leasing, there are mileage limits.
If you drive a lot of miles each year, then leasing a car may not be for you. Usually leased cars have mileage limits of somewhere between 12,000 to 15,000 miles each year. If you drive over that limit, you may be charged somewhere between 10 cents to 25 cents per mile.
However, if you purchase a higher mileage beforehand, then leasing may still be for you as well. Usually if you purchase the mileage beforehand then you can save money and not be penalized.
Can you return the car in perfect condition?
Do you usually beat up your car easily? If so, then leasing may not be for you. You may be penalized if you return the car in not perfect condition. You need to remember to keep the interior of the car in great condition, and also the exterior of the car.
So, what are the positives of leasing a car?
When leasing, the monthly payment is usually lower than if you are buying a car. Keep in mind that this is of course because you will not be keeping the car after the lease is over. However, if you never keep the car anyways or you know that you won’t need it after the lease is up then this can be a way for you to save some money.
You can negotiate the pricing of a car. This is something that many people don’t realize. If you are leasing a car, you can negotiate the price just like with a car that you want to buy. Do not forget about this!
And, what are the negatives of leasing a car?
The main negative of leasing a car is that once the lease is over, you have nothing to show for it. If you want to buy a car and drive it to the ground, you can save some serious cash over leasing a car. However, if you usually just drive a car for a few years and trade it in, this is where you may see value.
Do you plan on buying or leasing your next car?
Photo via Flickr by Easa Shamih