Advantages of Car Leasing
With more and more car leasing companies such as Go Green Leasing providing fantastic cars at an affordable price, leasing a car has become a popular choice with many drivers. So why is car leasing so popular and what should people consider before leasing their first car?
Although there are numerous benefits and disadvantages to consider. Leasing a car is more appealing for those who like to drive around in a new car, not having to worry about maintenance problems, who cannot afford to purchase a car or those who simply do not want to own a car. Leasing a car is better for those who get bored of vehicles very easy. At the end of a lease period, the driver can turn in the car and lease a brand-new vehicle with all the latest mod cons and design.
For those not looking for a commitment, leasing can be advantage for drivers looking to change cars within a few years. Leasing also means less hassle when you choose to purchase another car. The vehicle is simply returned; the driver does not have to bother trying to sell or trade the car in.
Assuming the leased cared is typically new, the chances of large repair and maintenance issues are slim. Generally, the car remains under the manufacturer’s warranty for the entire period of the lease, an additional financial advantage.
For most drivers, the price is the biggest deal breaker, with lease payments being lower then loan payments, for the same vehicle, leasing allows a person to drive a brand-new car for less money. However, in exchange for lower payments, the lessee does not have ownership of the vehicle when the contract is up, unlike purchasing the car and paying higher instalments.
Most disadvantages boil down to the lack of ownership, at the end of a loan, the buyer owns a car that they can drive for a few more years payment-free, while at the end of a lease, the lessee has nothing. Although some leasers do include an option to buy, the sum of this cost paired with leasing payments adds up to more than the cost of buying a new car.
A change in circumstance can often lead to unexpected charges and cost; for example, having to commute to work more frequently than first expected can result in lessee choosing between paying penalties for the extra miles or penalties for leaving the lease early. Which can lead to substantial charges.
As touched upon earlier, a lessee cannot opt to save money by not making repairs after an accident, since extra charges apply if the car is returned with excessive wear or damages. The amount of wear and tear tolerated is determined in the fine print of the lease agreement, which may be written so that any condition other than like-new condition results in a charge, so it is important to read the fine print before signing.
Like all big decisions, leasing a car comes down to personal preference. If a person wants numerous vehicles at lower prices with out the hassle of reselling, then leasing is the better option. You must bear in mind that a lease does not result on ownership and is not always the cheaper alternative to buying a car. Therefore, renting and car sharing are alternate options that may work for some people looking for less commitment.