Car Leasing Who Benefits From A Car Lease

The television, internet, and​ newspapers are filled with advertisements from car dealers touting super low prices on​ leasing a​ car. Many individuals are confused with the lease process and​ completely rule it​ out as​ a​ viable option​ when searching for​ a​ new car. Although leasing a​ vehicle does not benefit everyone, many car owners would greatly benefit by leasing a​ car instead of​ buying one, either new or​ used. if​ you​ are wondering if​ you​ will benefit from a​ car lease, consider the following thoughts:

Average Annual Mileage

if​ you​ drive your​ car over the river and​ through the woods…and​ then some, then leasing may not be right for​ you. Generally, car leases have a​ strict mileage maximum and​ you​ are heavily penalized if​ you​ go over this​ distance limit. Although this​ distance differs from lease to​ lease, the average limit for​ annual miles allowed in​ a​ leased vehicle is​ around 15,000 miles.

if​ you​ can easily stay within​ that mileage limit, then leasing a​ car may be a​ great option​ for​ you. However, if​ you​ will blow through those given miles several times over, then you​ should think again​ about leasing. Many car lease companies charge as​ much as​ $800 for​ an​ additional 4,000 miles driven over the mileage limit—and​ the charges can get steeper depending on​ how many miles you​ drive over the limit.

Low Out of​ Pocket Costs

if​ you​ need a​ car for​ transportation​ but do not anticipate on​ driving it​ a​ great deal, then leasing works out as​ an​ excellent option. Many individuals who have a​ car lease enjoy the low out of​ pocket costs when it​ comes to​ bringing the car home. Instead of​ hefty down payments typically associated with buying a​ car, leasing a​ car requires a​ small down payment or​ none at​ all!

Additionally, the initial taxes or​ fees usually tacked on​ to​ the cost of​ a​ new car do not apply to​ lease cars, so you​ can easily start a​ lease with a​ couple of​ hundred dollars instead of​ the thousands you​ would need when buying a​ car. Furthermore, instead of​ a​ hefty chunk of​ your​ monthly salary going towards a​ car payment, the lease payments are generally a​ great deal less expensive since you​ only pay for​ the depreciation​ of​ the car’s value during the lease period.

No Need for​ a​ Loan

Since you​ will not have to​ try to​ finance the entire cost of​ the car, leasing a​ car is​ great for​ individuals who would otherwise need a​ loan. Many banks severely restrict giving car loans to​ individuals with outstanding debt, including a​ mortgage, medical bills, or​ student loan payment. Leasing a​ car is​ an​ excellent way to​ bypass the banks and​ skip the entire loan process. if​ you​ find yourself unable to​ get a​ loan or​ will be forced to​ pay extremely high interest rates, think about leasing a​ car instead of​ buying one.

Newer Cars More Often

if​ you​ are a​ car lover and​ are constantly craving that new and​ improved model that just hit the showroom floor, then consider leasing a​ car. Leasing is​ a​ great way for​ individuals to​ continually exchange cars for​ the newest model without having to​ lose the money invested if​ they were to​ continually buy and​ sell cars. if​ you​ plan on​ keeping a​ new car every year or​ every couple of​ years, leasing a​ vehicle is​ probably your​ best option​ over buying.

Whatever you​ decide when it​ comes to​ leasing a​ car, do your​ research and​ choose a​ company and​ car that will meet your​ every expectation. Know the exact terms of​ the lease agreement, including any potential charges that may be incurred at​ the termination​ of​ the lease.

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