Leasing a car has it own set of pros and cons. In this article we will discuss some of the most important advantages and disadvantages of leasing that will help you deiced whether to lease a car or not.
Advantages
- Down payment and monthly payments are less: The down payment that you will make for the leased car will be very less, when compared to the monthly payments of the car you take. You can enjoy the benefits of the car that may be brand new in the market with less down payment and monthly payments.
- No repair costs: As it is a leased car the leasing company will bare for the repairs of the car. This will save money going out of your pocket for the repairs and maintenance. In most of the cases the car will be under the warranty of the manufacturer so that they will bare for the repairs.
- Less sales tax: In many countries the sales tax for the leased vehicles will be very less that they need to pay on only the portion of the car that they use during the lease period instead on the whole. The sales tax also can be paid along with the monthly payments of the car so you don’t have to worry about it.
- Having latest car in hand: You can have several choices when you go for leasing a car. So, you will have a chance to get the new and latest branded car with less money compared to the new one.
- GAP coverage: Guaranteed asset protection is a insurance coverage for the auto vehicles. People who lease the car or whose vehicle is in financing can get this GAP coverage. This will payoff the vehicle when it is lost or stolen were the insurance companies doesn’t cover the full loss. Most of the cars that are leased will have free GAP protection.
Drawbacks
- Costs for cancellation of contract in middle: If you have leased a car for few months you can’t cancel it in the middle of the agreement. If you want to terminate in the middle of the contract you have to pay much for the cancellation than what you have expected.
- Customization not allowed: Car customization can’t be done by you if you have leased the car. It is not allowed. If you want the customization you should ask the car dealer then, they may make the customization if needed.
