Pros and Cons of Availing an Auto Lease
Leasing new cars or vehicles has gained tremendous popularity and a number of people are opting to replacing their older and worn-out vehicles. But before you finally make a decision, it is absolutely essential to gain more knowledge about the pros and cons of auto leasing. This guide will help you understand everything you need to know about leasing and make a decision after looking into the pros and cons of auto leasing.
- The following are the advantages of leasing:
The monthly payments are lesser than loans
You can set aside a specific amount from your monthly budget for the repayment of the lease since the expenses will be lower than that of a loan.
This is one of the most convenient methods of availing a vehicle where you can simply return the vehicle as soon as the leasing period comes to end. You are only required to meet all the terms and conditions before handing over the keys to the respective owner/company.
You can change your vehicle, if required
Leasing a vehicle is on a contract basis; therefore, you can avail a vehicle after the contract is over. This means you can keep changing your vehicle without having to worry about selling and buying your vehicle if you are unhappy with it.
A lease does not require a lot of cash as down-payment which will definitely save you on your cash savings.
- The disadvantages of leasing a vehicle are as follows:
You cannot customize your vehicle
This is one main flaw if you wish to lease a car since you are not the owner; therefore, you are required to maintain it and keep it in good condition before returning it. This also means that you cannot customize the vehicle in accordance to your tastes and preferences.
You might get penalized for the wear and tear of the vehicle. The financial penalties are sometimes also included for conditions such as excess mileage. Therefore, maintenance is a must for all those who wish to lease a vehicle.
Abide by the contract
You cannot sell the vehicle especially if you are facing financial difficulties. Therefore, you need to be absolutely sure before leasing a new vehicle, keeping your finances under consideration.
Leasing is a good idea for businesses because they can avail the latest technology without really having to spend a lot of cash on a vehicle that will eventually become obsolete. But if you are an individual, then it is not really a good idea to lease because you will eventually end up paying more buying a new vehicle.
Deciding on whether to lease or not is a tricky situation; therefore, you should keep these factors in mind before making up your mind. If you own a business and wish to lease for the same purpose, then go ahead; it will be profitable in the long run.