Should You Buy or Lease
There are many benefits associated with car leasing however before we explore the advantages lets understand the procedure of leasing a car. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. The total amount that you have to pay is the difference in the current value of the car and its expected value at the time of expiry of the lease. The amount thus calculated is divided over the duration of the lease and added to the monthly interest. Normally it shouldn’t take you more than two days to drive away in your new car. What you do at the end of the lease is entirely at your discretion and you can either keep the car buy paying the residual value or return the vehicle.
Advantages:
The primary advantage of leasing a car lies is the fact that you can get a new car for a very low price. Most people rarely go for lease durations that exceed one year which means that you can drive around in the latest models each year. Most people like to drive way in a new car during the holiday season because mist manufacturers introduce the new models in the market in fall.
If you lease a car you can opt for the really upscale models that are brand new.
One of the problems if owning a car is that you have to take care of all the expenditure involved in maintaining it but when you lease a car it is covered by a warranty because it is brand new. So incase of dents and scratches you wont have to spend the whole day at the workshop just take the car to the dealership and they will handle it for you
Another advantage to reckon with is the substantially lower cost involved in leasing a car which stands at just 40 to 70 % of the value of a new car. You can also trade in your old vehicle to get a reduction in the down payment or the monthly payment
Normally you would have to go through the rut of buying a used car and then selling it but not only is this hassle eliminated when you lease a car you also dont have to worry about the insurance because the dealer handles it for you.
Finally, most leased cars come with free gap protection in case of car theft or total loss due to an accident
Disadvantages:
Unfortunately a leased car cannot be included in your assets list because you dont actually own it.
If you own a car you can sell it anytime you want of course you will not make the same amount that you spent for it but something is better than nothing.
Before you lease a car you will have to contact the dealership to determine if you are eligible for a car lease
Leased cars come with fixed mileage which may pose a problem. What this means is that you will have to pay extra for each mile above a predetermined limit which is set when you sign the lease To read more about this and virtual currency then visit the link in this sentence.
