Are you one of the many people who consider leasing a car? If so, you’re not alone. Best car leasing companies are constantly bombarding us with ads for lease deals and other incentives. So how do you make an informed decision before entering into a legally binding contract? Here are five things to think about before considering your car leasing options.
1. You Can Afford It?
A lease is an expensive way to drive around town. While it’s true that leasing offers some drivers more flexibility than buying, you have to be able to afford the payments, or else you could be in a lot of financial trouble. Before signing on the dotted line, take a hard look at your budget and see if you can afford to make those monthly payments every month for the duration of the lease.
2. The Mileage Limit Is Too Low
In some cases, leasing allows you to put more miles on the vehicle than buying would allow you to do. However, this is not always a good thing. Be sure that if you decide to lease a car, you have enough money to pay for any additional miles that will be put on the vehicle during your lease period. Also, check the limit on how many miles can be put on the vehicle during the course.
3. How Long Do You Plan on Keeping the Car?
If you’re planning on keeping the car for less than three years, it’s probably not worth it. Leasing a car for shorter periods will increase your monthly payments, and if you pay off your lease early, you’ll have to pay a high penalty fee.
4. What are the Trade-in Options?
For most leases, you can turn in the car at any time and get another one with no penalties or added costs. Other offers may include mileage limits or other caveats that could reduce your savings considerably.
4. Is There an Option to Buy at the End?
Lease agreements are typically set up so that you can either return the vehicle or purchase it for a pre-determined price at the end of your lease. Whether this is an affordable option for you depends on how much money you plan to put down up front and what fees apply at the end of the lease term.
5. Do I have to Worry About Maintenance?
If you choose to return the vehicle at any point, before you lease a car, you should consider your options and make sure it’s right for your lifestyle.
- How much is it?
- How do I make sure I get the best deal?
- What kind of control will I have?
- Can I avoid getting ripped off with add-on fees?
- How can I be sure that my car is safe on the road?
Most people don’t know all the ins and outs of car leasing, but it doesn’t have to be that way. When you’re looking at your options, there are several aspects of leasing that you should keep in mind. Contrary to popular opinion, car leasing can be advantageous for you in some circumstances before you consider your leasing options.
You must pay taxes on the value of your leased car every month. Leasing is a good option if you plan to turn in the car early. Your monthly lease payment will include depreciation expenses. You can get lower interest rates when you finance your leased car. You can find affordable leases for luxury cars. Regardless of whether you’re a first-time car buyer or leased cars in the past, there are some things to know before you sign that lease on your next set of wheels.
Few More Things to Think About Before Considering Your Leasing Options
1. How Long Do I Plan to Keep This Car?
Leasing is a great option if you’re planning on keeping your car for three years or less. If you’re going to keep it longer, consider buying it—you could save money in the long-term by purchasing a vehicle rather than leasing it.
2. How Much Can I Afford to Pay Per Month?
This is important because lease payments can vary widely, depending on the type and make of your car and what kind of deal you can negotiate with the dealer.
3. What Kind of Mileage Am I Likely to Get Out Of The Car?
Some leases have mileage minimums, so if you drive more than average, you’ll pay more in the long run than someone who drives less.
4. What Are the Maintenance Costs Involved with Leasing?
Leasing generally involves paying for a certain number of maintenance visits per year, and those visits can be expensive—so make sure to factor them into your budget before.
