You could be in the market for a new car, and you found another alternative to buying brand new and buying second hand—leasing the car instead. Personal car leasing is when you use the vehicle for a fixed amount of time on a monthly payment basis. It is presented as a hassle-free option, a decent car at a reasonable price, with no long-term commitments.
However, before making your decision based on that general description, consider the pros and cons of leasing your car. Assess whether your situation allows you to make the most out of it or not.
Pros of Leasing
One of the main advantages of leasing your car is the sheer convenience. You can quickly look online for sites like www.genusleasing.com and browse through their catalogue. There is no limitation to the kind of model or brand. There is a fixed price that does not change with the economic climate. You also do not have to worry about depreciation risk and the struggle of selling it when you upgrade. You just need to return it to the dealer. The convenience can be summarised as: simple payment, quick replacement, and no messy clean up afterwards.
Another pro is that you only have the car in its peak condition, and the latest models, some of which could be out of your price range if you purchased new. You do not have to drive it when problems begin to pop up after years of wear and tear. You also do not need to be stuck with the same model because it seemed like a good investment five years ago.
However, there are downsides to leasing your car, most of them are directly related to what makes the arrangement so great.
Cons of Leasing
The disadvantages of leasing your car are dealing with the contract. There are provisions for mileage at the end of a certain amount of years with fees for every mile you go over. There are also provisions for the overall maintenance and appearance of the car. It should be in the same condition as when you got it, and any dents may incur fees as well. That is the price of not purchasing the car. You will pay extra fees for anything that may prevent it from being leased to another person.
Another con of leasing your car is that, while it is cheap at that moment, you are continually paying for it monthly. The car never really pays for itself back. That is the trade-off for having the latest model.
When you are in the business of keeping up appearances, like dealing with high profile clients, leasing your car is a definite investment. However, if you are looking for a family car and you are driving with young children, you should account for the possible damage caused by accidents. These are some examples of where the pros and cons come into play. Take a look at what you want your car to do for you.