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Car Profiles
Just another Car Blog
Should You Buy or Lease
There are many benefits associated with car leasing however before we explore the advantages lets understand the procedure of leasing a car. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. The total amount that you have to pay is the difference in the current value of the car and its expected value at the time of expiry of the lease. This amount is equally divided over the lease period and added to the monthly interest. Depending on your credit rating it rarely takes more than a day or two for you to drive out with a brand new car. What you do at the end of the lease is entirely at your discretion and you can either keep the car buy paying the residual value or return the vehicle.
Advantages:
Leasing is a perfect option for people who want to drive a brand new car for a really low price. One year leases are the most common which means that people can drive in a brand new car every year. Since most new models come out in the market in fall the holiday season is the perfect time to get a new car.
Most establishments that deal with auto leasing have the more upscale models which are always brand new.
When you buy a car you have to be ready to incur all the expenditure related to the upkeep of the vehicle but since leased cars are brand new they are under the manufacturers warranty. So incase of dents and scratches you wont have to spend the whole day at the workshop just take the car to the dealership and they will handle it for you
Another major advantage is the fact that you pay substantially less for a lased car almost 30-60% less than what you would have to pay to own a car. You can also trade in your old vehicle to get a reduction in the down payment or the monthly payment
Leasing a car is considerably hassle free as compared to owning a used car which would involve not only buying it but also selling it eventually, plus the insurance is taken care of by the dealer when you lease a car.
You are also protected against theft or total loss due to accident with a free gap protection
Disadvantages:
One of the problems with a leased car is that you cannot count it towards your assets and so essentially you dont get a product in return for your investment.
If you own a car you can sell it anytime you want of course you will not make the same amount that you spent for it but something is better than nothing.
You will have to get in touch with the dealership to find out if you can lease a car
The fixed mileage is another problem with car leasing. Your lease agreement will usually include the mileage limit per month and any usage above this limit will be charged over the fixed monthly payment. To read more about this and virtual currency then visit the link in this sentence.
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