There are many factors to consider when deciding whether to lease a car, like when buying new and used cars there are always pros and cons. We offer some practical advice from the motor trade industry on the positives and negatives of leasing a car.
Car Leasing Pros
Low monthly payments is one huge positive when you lease a car, and you can lease to suit your budget. Many individuals will also find that newer cars are cheaper to lease, as they come with special deals. When you lease a car you will be paying on average between 30 to 60 percent lower, than if you had taken out a purchase car loan.
Low or no down payment, very often no down payment is required, and if there is one it is usually at a low cost. Some dealers also offer to trade your old car in as part payment. Usually all that is required is the first month’s payment before you drive the car away, but first we highly recommend taking a test drive with all new and used cars.
A brand new car is by far one of the biggest advantages, in that you get to drive a new car every two to three years. This way you can drive the very latest models as a lease far greater flexibility than if you bought.
Low maintenance costs, because when you lease a car for the same time as the manufacturer’s warranty, then you are covered if something goes wrong with the car. This is something that many drivers worry about, those additional costs that add up throughout the years, so if something does go wrong with the lease car, you are fully covered.
No need to sell, as many of us already know selling a used car can be a little tricky. When you lease, this particular hassle is taken off your hands as you simply return the car. There is of course the option to buy the car, if you so wish, or to simply take out a new lease.
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Car Leasing Cons
If you have a poor credit history then it may be difficult to lease a car. If you do manage to secure a lease arrangement, then you may find the monthly payments are higher than average.
You don’t own the car at the end of the lease agreement, you may be able to buy the car, or alternatively you can take out a new lease agreement.
Responsible for the wear and tear at the end of your lease, as the car should be returned in good working condition. If there has been extensive damage, such as scratches and dents to the vehicle, then you will be responsible for the repair costs.
The motor trade has various options available for when you wish to lease a car, just make sure that you carefully consider all of the pros and cons. Also, it is important to remember that even when leasing a car, you will need to take out the right insurance policy.