Should You Buy or Lease
There are certainly no denying the fact that there are several benefits to leasing a care but before analyzing them we need to find out what care leasing is all about. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. The calculation of the total payable amount is very simple and it is the difference in the car’s current value and its expected value at the end of the lease period. So your monthly payment is the sum of the interest and the total amount divided over the entire duration of the lease. If your credit rating is good it will not take you more than two days to get your new car. Once the lease expires you can choose to buy the car or to just hand in the keys and walk away.
Advantages:
Leasing is a perfect option for people who want to drive a brand new car for a really low price. Since people generally opt for the one year lease it means that they can drive in a new car every year. Since most new models come out in the market in fall the holiday season is the perfect time to get a new car.
Most establishments that deal with auto leasing have the more upscale models which are always brand new.
One of the problems if owning a car is that you have to take care of all the expenditure involved in maintaining it but when you lease a car it is covered by a warranty because it is brand new. So if you meet with a minor accident the dealership will take care of all the structural damage
The monthly payment is significantly lower, almost 30-60 percent less than what you would normally pay if you were to own the car. You can also trade in your old vehicle to get a reduction in the down payment or the monthly payment
Leasing a car is considerably hassle free as compared to owning a used car which would involve not only buying it but also selling it eventually, plus the insurance is taken care of by the dealer when you lease a car.
When you lease a car you are also offered free gap protection which covers you in case of loss due to accident or theft.
Disadvantages:
Since you dont actually own the car you will have nothing to show for the money that you pay in monthly and initial payments.
If you own a car you can sell it anytime you want of course you will not make the same amount that you spent for it but something is better than nothing.
Not everybody is eligible for car leasing and you will need to check with the dealership beforehand
Leased cars come with fixed mileage which may pose a problem. When you sign the lease you accept the condition that you agree to only use the car for a fixed number of miles each month and you will have to pay extra for each mile above this limit To read more about this and virtual currency then visit the link in this sentence.
