Pros and Cons of Leasing
Leasing a vehicle can be advantageous for certain people, depending on their needs, their lifestyle and their personal preferences. For the most part, leasing provides an opportunity for people to drive more expensive vehicles for less money each month and for less money down. Additionally, leasing allows consumers to drive a new vehicle every few years, depending on the length of the lease program. Moreover, most leased vehicles are comprehensively covered under a manufacturer's warranty during the length of the lease, allowing consumers to own a more expensive vehicle without the worry of large maintenance and repair bills.
Finally, unlike owning a vehicle outright at the end of a standard automotive loan, leasing helps consumers avoid the hassles often associated with selling their used car to an independent third-party or trading in their vehicle to a local dealer. Instead, you simply turn in your vehicle at the end of the lease term and begin a new lease on a new vehicle, if that's the route you choose to take. It's a simple method some consumers find more attractive than the traditional used car sales or trade-in process.
To begin, most vehicle leasing programs have a yearly mileage limit. This means that you can drive your vehicle only a certain amount of miles every year without paying a penalty at the end of the lease term. Obviously, these mileage limitations wouldn't work for someone who drives their car long distances on a frequent basis or someone who simply can't embrace being limited to the amount of miles they drive in any given month during any given year.
Another disadvantage to leasing is that at the end of the lease term, you don't own the vehicle. For some people, this is OK. For others, it doesn't make sense to make monthly payments for three, four or five years on a car they'll never own.
Finally, the vehicle leasing process is, in essence, difficult. Lease contracts are often confusing, arduous and lengthy. Additionally, you are bound by the lease terms set forth in the contract, even if your driving habits, preferences and needs change. As a result, the difficulty of understanding lease contracts and terms, coupled with the inflexibility of most programs available today, makes leasing an unattractive option for some people.
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