Car Lease
A Car Lease is a form of car financing that lets the consumer pay for a vehicle only for the time that they use the car. After the terms of the lease are up, the driver then has the option of returning the vehicle or buying it at its depreciated value. There are many different factors to consider when deciding whether or not to lease a car. While it is true that leases don't necessarily work for everyone, a little research can go a long way toward providing an answer to the all important question of "lease versus buy."
Buyers that prefer driving a new car and those who enjoy switching cars regularly are excellent candidates for a lease. The option to lease a new car also gives many owners the ability to enjoy a vehicle they may otherwise not be able to afford. This is because lease payments tend to be less than new car payments, so some lessees find themselves able to afford vehicles normally out of their reach. On a related note, a lessee does not have to worry about keeping track of resale value or taking a financial hit because of vehicle depreciation. At the end of a lease, the vehicle is returned to the leasing company and the owner is free to do as they please with their next car purchase. This also saves them the effort of making time to sell (or trade) their vehicle. Some leases include an option to buy at the end of the term. This may be a good option if the owner has become attached to their automobile or simply doesn't feel the need to move on to a newer model.
There are some aspects of leasing that make finding a low-mileage used car a better option for some buyers. Every lease is subject to mileage restrictions. Owners surpassing these restrictions will be penalized when they return the vehicle at the end of their term. This could work out quite well for the average day-to-day commuter car with predictable usage, but could cause issues when non-commuter miles are considered. Lessees can expect to pay for excessive interior wear and tear on their vehicle. Drivers who transport pets or potentially messy cargo may consider either a second car or an outright purchase to avoid penalties.
Some dealerships will pay for required maintenance, as a leased car will be easier to resell because of the well-documented history. This means car enthusiasts will not be able to modify their vehicle during their ownership. Owners who enjoy servicing their own vehicle may take issue with bringing their car to the dealer for maintenance. Lease details vary from dealer to dealer, so it is still beneficial to take the time to get quotes from a number of dealerships before signing a contract. Shoppers may also wish to compare the lease cost with the loan cost to see which best fits their preferred payment.
