Leasing a car, truck or SUV is an interesting option, and one that many buyers have considered. Like other methods of acquiring the transportation you need, leasing has both its good points and its bad points. It is important to understand the pros and cons of leasing a vehicle before signing on the bottom line, and it pays to do plenty of research before making this important decision.
This guide explores the pros and cons of leasing your next vehicle. Let's start with a look at some of the most significant advantages of leasing your next car, truck or SUV:
Leasing generally equates to lower monthly payments. Since a lease program typically requires paying only a portion of the vehicle cost, the monthly payments can be quite a bit lower than the payments on a straight purchase deal.
Leasing a car, truck or SUV also allows car shoppers to drive newer cars, and to swap them out more often than they may otherwise be able to afford. If you are the type of driver who simply must have some new car every three years, leasing may be the perfect solution for you.
Those who lease their vehicles can also enjoy fewer maintenance issues than those who buy. Matching the terms of the lease to the terms of the manufacturer's warranty can help eliminate the risk of costly repair bills as well.
Leasing can also result in a reduced need for cash when taking possession of the car. When purchasing a car, a significant amount of cash is often required - to pay taxes, make the first payment and cover other significant costs. With a lease, little cash is generally required when the car is picked up.
Of course, there are disadvantages to leasing a vehicle as well, and it is important for all car shoppers to be aware of these possible pitfalls as well. There are significant risks associated with leasing a vehicle, and those risks should not be overlooked. Some of the most significant disadvantages of leasing your next car, truck or SUV include:
Those who lease their vehicles may be subject to stringent mileage limitations, and significant charges for exceeding those limitations. Some leases limit drivers to a mere 12,000 miles per year, an easy figure to exceed. The charges for going over these modest limits can be quite significant, so it pays to read the fine print.