As with every financial decision, there are pros and cons for leasing a vehicle
versus buying it. Here's a quick look at them:
Leasing a vehicle
PROS
-
You can often get into a lease deal with a lower down payment than that mandated
by many purchase plans.
-
Since you're only paying off the depreciation on the car's value (plus a fee to
the leasing agent), your monthly payments may also be less than buying the car.
-
The end of the deal is generally a snap. Rather than having to hassle to sell a
car or trade it in on a new one, you simply bring it back to the dealership or leasing
agency.
CONS
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The first is akin to the advantages of owning a home rather than simply renting
it -- you're building no equity.
-
You'll never be without a car payment, while someone who buys a car and takes care
of it can enjoy several years of driving without having to fork over any dough.
-
Getting out of a lease prior to its designated termination date can be prohibitively
expensive, as many leases levy steep penalties for early returns.
-
Leases commonly charge you extra if you drive more than the number of miles specified
in the lease.