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« Back to articles from category "Automotive"

The following article was published in our article directory on January 24, 2012.
Learn more about SpinDistribute Article Distribution System.

Car Lease Pros and Cons

Article Category: Automotive

Author Name: chickie maxwell

Car leasing offers great alternatives to car buying, although not all of the advantages are for everyone to enjoy. It falls on you to decide on the importance of these benefits based on your prioities. Take a good look at the pros and cons of car lease.

The Pros

Of course, the lower monthly payments are real juicy. This is so since you only get to pay for a portion of vehicle you are using, as payments for your monthly lease are significantly lower compared to a purchase loan with the same term and vehicle. You also have the option of skipping down payments, though you still need to pay the first month payment, including the registration fees.

Think about getting more cars more often. You can now actually drive new vehicles fresh from the production lines every two or four years, depending of course on the lease terms. With car leasing, you can also expect fewer headaches when it comes to maintenance. Smart people agree to terms that also coincides the coverage of the car manufacturer's warranty. They know that whenever something wrong happens, the coverage will always be there to back them up with the repairs.

Most of the car leases these days require little or in some cases no down payment at all, which makes driving new cars more affordable. It even frees up your cash in other things. You can always opt for a down payment if you prefer lower monthly payments. When it comes to the tax bite issues, you will not be required to pay for the sales tax on the leased car's entire value as you would once you purchased it. You will only be taxed specifically on the value used on your lease.

With car leasing, you will not suffer the same headaches when selling your car. When the lease ends you can simply return the car back to the company and walk away. You can also opt to buy or trade it.

The Cons

The early termination cost is one issue you need to get your hands on as early as possible. Terminating your lease term before contract expiration is very costly, and in some cases much higher than expected.

Low monthly payments may be a clear advantage in car lease, but there is a trade-offs as well, especially in not have having typical ownership, or a trade-in value of the leased car. It's common however, for the car's market value at lease-end to come out higher than your purchase rate options. This suggests that you now have an equity trade value to play with. It's not even unusual to tag along some thousand dollars of an unexpected equity.

You will be plagued with a case of excessive mileage charges whenever you exceed the allowance stated in your contract. Extra miles will certainly be charged specified per-mile rates. In this case, you can always reduce your exposure once you purchase those extra miles you think will come in handy when the time comes to avoid higher end-of-lease charges. The best part of this is that you can still look forward to getting refunds for any unused miles.

Now, you have the best of both worlds. Sign up for your car lease now.

About the Author: MyReviewsNow offers information regarding a car lease. To learn more about a car leas, visit our website at MyReviewsNow.net.

Keywords: car lease

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