The Advantages And Disadvantages Of A New Vehicle Lease

 

There are advantages to both buying a vehicle and leasing a new vehicle. It is important to understand the differences between your options and the advantages/disadvantage. As consumers, we all have different lifestyles and interests when it comes to our vehicles, so it is important for us to understand if leasing or buying is more fitting for us. For example, if you drive a lot, then it is a simple choice to say you need to purchase a vehicle. However, if you love getting a new ride every 2 to 3 years and don't drive many miles, then a lease could be an option for you.

Advantages:
1. You are always driving a new car! 
2. A lease allows you the opportunity to reduce monthly payments for your car note and allow more cash expenditure within your budget. 
3. Freedom. Lease terms can be anywhere from 18 months to 36 months on average. If you have commitment issues, a lease is perfect for you.
4. No worry for major repairs or maintenance. With a new vehicle, your lease will be covered under the factory warranty and depending on your manufacturer, you can have a maintenance plan tied into the vehicle's contract. 
5. Monthly payments are low and affordable. Definitely lower then cost of purchasing a new vehicle, sometimes about $100 less or more per month!
6. Manufacturer offers great incentives and rebates for lease offers month over month.
7. Leasing will almost always save you money. New vehicles depreciate value every 2/3 years. 
8. Licenses plates & renewal stickers are taken care of by the dealership of purchase.

Disadvantages:
1. The concern of mileage is a huge driver for many consumers. If you drive a lot, then stay clear. Most lease contract terms are around 10,000-12,000 miles per year. If you exceed the mileage, there will be penalties, such as a charge per mile over your agreement with the manufacturer. 
2. You cannot make changes to the vehicle. Someone who owns a vehicle might change the rims, exhaust system or stereo system. This is not allowed on leased vehicles. 
3. You will not have a "trade-in" value at the end of your term to put down against your next vehicle. 
4. If there is damage to the leased vehicle when you turn it in, you are responsible for the reconditioning costs. However, be smart and purchase coverage at the time of lease to assist you in case your vehicle has any wear and tear.

Categories: New Inventory
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