The Pros and Cons of Car Leasing

For those who are not yet familiar with car lease, you should know that this type of deal offers more advantages that you can ever imagine.

More like a smarter business strategy for some people, vehicle leasing can benefit you in numerous ways. From lower tax bite to reduced monthly payment, you can now imagine owning your dream car without having to break the bank. Yes, you heard it right! With car leasing, you can always drive a new car with nothing to worry about down payment, running costs and even monthly rental payment. If you get lucky, you can even avail of novated leasing which is an option for employees with approved pre income. To further understand how this deal can benefit you, let us take a look at both the advantages and disadvantages.

Pros
If you are thinking about finances relative to a car purchase, then there is really nothing much to discuss about. Technically, owning your dream car through vehicle leasing does not require a large pay out. A lessee would only have to pay a monthly rental charge and once the lease period is covered, you can eventually change it for a newer model. Apparently, you are given the option to trade the vehicle or own it after 1-5 years. How convenient is that?

Running costs and other expenses can be quiet a burden for most consumers. But with car lease, drivers are covered with warranty. There is nothing to worry because lessee will have their cars covered throughout the warranty period. In case they opt to change to another model, they are still ensured with the full warranty. Repairs and other maintenance issues will have to be shouldered by the monthly rental payment.

Talking about the costs, leased vehicles do come with predictable monthly charges. As a matter of fact, these charges are even lower than the maintenance costs of a newly purchased car. That said, many drivers consider car leasing as a smarter option than procuring a new vehicle. Now if you are looking at a Subaru lease, then vehicle leasing is one great deal any driver could not resist. For newer models and quite expensive vehicles, you can actually check novated leasing and see if you are eligible for an offer.

Cons
When we talk about car leasing, one of its obvious disadvantages is the fact that the lessee can never actually own the vehicle. What do you mean by that? Well, the only way for the lessee to actually own the car is for him to purchase it at the end of the leasing period. Unfortunately, this is not an option that you can take advantage of as most leasing deals don’t allow it.

Another disadvantage that might cause you to reconsider is the fact that most lease contracts establish a set amount of miles. In case you go beyond the limit, you might have to pay extra. Now considering the fact that you are only renting a car, the whole deal can be very costly in the long run. Consumers who wish to stick to a specific vehicle for a longer period might find this option a bit pricey.

Auto Novice

Auto Novices is a blog, that was set up in November 2011, which tries to help inform new & old automobile owners about various subjects from keeping their car in good working order right through to tips on buying a new & used motorbikes. GUEST POSTS: If you would like to produce a guest post for this blog then please contact us via the link in the navigation menu at the top of the page.