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Car Profiles
Just another Car Blog
Should You Buy or Lease
There are certainly no denying the fact that there are several benefits to leasing a care but before analyzing them we need to find out what care leasing is all about. 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. once you decide the duration for which you want to lease the car, the dealer will fix the monthly payment amount. 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. So your monthly payment is the sum of the interest and the total amount divided over the entire duration of the lease. Depending on your credit rating it rarely takes more than a day or two for you to drive out with a brand new car. At the end of the lease period you can either purchase the car or hand it in.
Advantages:
The primary advantage of leasing a car lies is the fact that you can get a new car for a very low price. Most people rarely go for lease durations that exceed one year which means that you can drive around in the latest models each 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.
One of the problems if owning a car is that you have to take care of all the expenditure involved in maintaining it but when you lease a car it is covered by a warranty because it is brand new. So if you meet with a minor accident the dealership will take care of all the structural damage
Another advantage to reckon with is the substantially lower cost involved in leasing a car which stands at just 40 to 70 % of the value of a new car. Another option to further reduce the down payment or monthly installments is to trade your old car in
With a leased car you don’t have to deal with the hassles of selling and buying a used car also other formalities like insurance are taken care of by the dealer.
You are also protected against theft or total loss due to accident with a free gap protection
Disadvantages:
Since you dont actually own the car you will have nothing to show for the money that you pay in monthly and initial payments.
Even though an owned car will also depreciate and that amount is lost, the residual amount is still yours to keep after the sale of the car.
Before you lease a car you will have to contact the dealership to determine if you are eligible for a car lease
However, the biggest issue with car leasing is the fixed mileage. What this means is that you will have to pay extra for each mile above a predetermined limit which is set when you sign the lease To read more about this and virtual currency then visit the link in this sentence.
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