CAR LEASING ANALYSIS: PROS AND CONS

At least once in life, everybody has a desire to put himself in the driver’s seat. Of course, you’re looking for different ways to start driving or thinking about what car you should choose and how long to use it. If you have a question, should you lease a car or no — here is the list of pros and cons for you! The decision to drive a leased vehicle is tough sometimes but there is no reason to get worried. 

Is leasing for you?

Let’s return to the driver’s seat. Either you’ve tried a friend’s car or drove a brother’s one, you’re sure to have your own. You’re thinking of renting some transport for a week or buying to be a full owner, or leasing to find your option, to drive the latest models, to be sure about payments.

Supposedly, you know a lot about some advantages of car leasing. And you have some doubts because once somebody told you about their bad experience. Here we go! Let’s do this analysis together and you’ll find the solution if you should start your cooperation with a leasing company!

Let’s start with the general understanding of the leasing process. 

First, don’t confuse it with other types of auto loans such as rental conditions or buying a car. Leasing is such a kind of having a vehicle when you get it for a fixed term and have lease payments every month. The certain amount of money you pay regularly depends on the initial payment, annual mileage, and car model.

So, it’s up to you what to choose and how to control your costs. Most people are puzzled either leasing or buying will be better. We want you to know more about leasing and be sure what you should expect. 

Leasing Pros — Why Do People Lease Cars?

Low initial payment

Leasing a car means the down payment (not always). It’s not refundable and made on the agreement. The initial payment consists of several fees you have to pay: first month’s full payment, acquisition, registration fees, and taxes. As a down payment, you can pay a little money or make this fee higher. This option is up to you and in both cases, it’s your profit. If you pay less in the beginning, you don’t feel the cost. If you make the initial payment higher, your monthly payments become lower. It works on your behalf!

Latest models for lower payments

The biggest advantage of leasing a vehicle is your access to the newest cars. Not everybody wants to lease only because of luxury transport. But you might enjoy your rides on the latest model cars for minimum wages. Monthly payments you have during the leasing period are definitely lower than buying a car of the same model. So, leasing offers the perk of paying less for your dreamy driving.

Warranty coverage through the lease term

It is connected with new cars you lease. In case, you need any mechanical repair of your leased vehicle you will have it for free thanks to factory warranties.* During the warranty term of your leased car your wastes for fixing are covered with this plan of the car manufacturer (Toyota, BMW, Hyundai, etc).

Depreciation of the car

It is like a leasing bonus that depreciation of the car is subtracted from the total lease cost. The total lease cost is based on the car depreciation which makes driving a car the most comfortable for everybody. For instance, if the price of the vehicle is $30,000 and at the end of your leasing term it will be $15,000, you just pay the difference which is $15,000. And then you pay some extra fees and taxes. It is profitable for the driver because you don’t pay the whole car cost but only its value which is evaluated for that time.

Opportunity to buy a car

The most important difference between a leased and a rental vehicle is your opportunity to buy a car. If you like to drive the car you leased you can discuss with the leasing company an opportunity to make a purchase.

*Pay attention that warranty terms and lease terms are not equal. For instance, if your leasing period is 24 months and the warranty term is the same, your repairs will be covered during the time you hold the vehicle. But in case you want to renew your lease, the factory warranty is not automatically renewed and it can’t be renewed at all.

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Leasing Cons — Why Are People Worry About Leasing?

Mileage limits

Generally, when you lease a car it means some mileage restrictions. If you analyze your lifestyle carefully and count the average distances you will go it won’t be a problem. If you think you are going to ride 15,000 miles the personal assistant will help you to find the appropriate car. But still, you should be attentive enough to count it correctly and not get some extra miles. Click here to keep in touch with your personal expert!

Potential unexpected fees

If you exceed a certain number of miles or didn’t check your warranty expiration term, you will be charged more than expected. Extra fees can also be paid if you want to hand your car back before the end of the contract.

Car insurance is extra

Car insurance is not provided by the leasing company as a part of your monthly payments. The factory warranty doesn’t cover all the costs. If you need some repair work on the car due to accidents or common wear and tear it doesn’t have any coverage so you have to pay for it.

Time limits

You have to hand the vehicle back by the end of the leasing contract. Of course, the purchase can be discussed and it’s possible, but leasing means having a car for a fixed period of time.

Variety of companies

It can be considered as an advantage as a disadvantage at all. It’s a good option that you have many providers to make a choice but sometimes you feel lost among the leasing service companies. The point is that leasing companies provide the latest model cars for an affordable price which is usually lower than car dealers offer. Fortunately, it’s not difficult to make sure that the company has a good reputation, a wide range of clients and provides the best experience you need! Contact Grand Prix Motors now and get your successful deal!

Thus, you can see that leasing a vehicle is your opportunity to drive a car you want for the payment which is comfortable for you. All the details of the leasing contract are built on your preferences, routines, and desires.

Of course, there are some limitations and restrictions and excessive fees are possible. As always it depends on your consideration and responsibility. Leasing a car seems like first-time swimming. You know all the rules and tricks, you are aware of different ways and opportunities of the process but you still have some doubts. Keep in touch with your personal assistant in Grand Prix Motors and enjoy your experience! 

#enjoy your freedom with Grand Prix Motors!

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