Car leasing can provide more advantages than buying a car in certain situations. If you don’t have enough money for a down payment, or maintenance costs if the warranty runs out, leasing may be a good option for you. Leasing is also better for those who have a less than stellar credit standing. In cases where a person has gone through a repossession or bankruptcy, leasing a car can be a better way to begin repairing their credit before applying for a car loan. Because debt is all too common these days, many are turning to leasing a car in order to prevent increasing their debt burden and running into more financial trouble down the road.
What You Need To Know
If you have decided to lease a car there are a few things to consider so you get the best deal. The most important aspect of leasing a car is the terms and conditions of the lease contract. Most of the time, the lease contract may have a limit to the amount of mileage that is allowed to accumulate on the car per year. If you exceed this limit, you could end up paying a lot of money at the end of your lease. Make sure you have reviewed the fine print of the lease contract for things such as the interest rate, taxes and early termination fees.
Car leasing may provide you a way to drive that luxury vehicle you have had your eye on, but don’t get too excited just yet. More expensive cars bring higher insurance premiums, which mean higher out of pocket insurance costs per month. The car’s specifications can also impact your wallet and the additional costs of maintaining the car should be considered. Gas mileage, oil changes and keeping up with regularly scheduled maintenance can add up quickly. In many cases, maintaining a car lease while making timely payments can reflect positively on your credit standing. Make sure you don’t over extend yourself in a car that costs more than you can afford to maintain, putting you at risk for increased debt, repossession or worse.