Big decision-Auto leasing-advantages and disadvantages
If you have a special car that you like but do not want to go thru the trouble of getting an auto loan and paying back it, you need to think about auto leasing.When leasing a car or truck you are paying cash to use it for a restricted lease time period and one it is finished you will generally have the solution to upgrade. The process of auto leasing is very similar to renting an house.As with leasing whatever,there are advantages and disadvantages that you need to consider just before making the final judgement.
Advantages of auto leasing
Saves money-this is a huge advantage of auto leasing as it costs less.When you lease a vehicle,you sign a lease agreement that states the length of the lease and the sum paid every month.The amount to be paid each month is the predetermined value of the devaluation of the car during its usage. The payment as well includes interest. When analysing the monthly lease payment to an auto loan monthly payment,the lease sum is less.If you are low on money then leasing is the best option.
Tax benefits-when you lease a car you do not have to pay in advance any sales tax on the lease amount. The sales tax is included in the month-to-month transaction.
Minimal maintenance-if you lease a car whose warranty is still current you will not have to spend any money at all on pricey repairs.
Wide variety-with a lease agreement of short duration, which is usually two to three years, you can return the car and lease another one.This method you can drive a variety of brand new or older model cars.
Disadvantages of auto leasing
Restricted usage-most of the auto leasing legal agreements comes with conditions.They can restrict the number of miles that the car can be driven in a year,so if you use more miles that allowed you may have to pay extra fees. With a limited range of miles per 12 months,this could possibly limit where you can go on vacation or if you can even take any spontaneous weekend break trips.
Eligibility requirements are bigger-it can be very complicated to lease a car if you have bad credit rating.Before leasing a car to anyone, they usually consider the credit history,because the car leasing company does not want any problems in monthly payments.
Quick end of contract can be expensive-it is not simple to get out of a lease agreement early. If the leased vehicle is stolen,or you want to stop the lease, you may have to pay the rest of the lease.When totaled or stolen it the amount owed could be too much that your insurance policy will not cover it.