Choosing a dream car is a thrilling process, but whether to lease or buy it can be a hard decision. Some people find leasing a good deal, while there are a few that don’t feel comfortable. It is better to do your homework before you visit the dealership or look for a car leasing Broker Company.
A leasing broker company is a medium that connects the car manufacturer and the lease company with the customers. For example, for the best car lease deals in South Florida buyers approach Lease A Car Direct firm because they have access to a wide network of dealers and different finance companies.
What is a car lease?
Car lease means just like renting an apartment. There is no conventional financing like huge down payments involved because you are not paying the total car value but only for the limited time, you will use. Besides, all the added costs towards registration or maintenance or any other indirect costs which get incurred during the term will be considered in the leasing agreement.
Pros of car leasing
- People who are into changing cars in a couple of years can pay less through leasing instead of buying. They also don’t need to handle the hassle of selling the car at the end of lease expiry, just return it.
- Lease monthly payments are lower than a car bought on the mortgage.
- Leasing allows people to choose an expensive car, which they are unable to buy.
- Leasing offers the flexibility to change the contract based on your usage to either extend, exit, or switch to another vehicle.
- Some people get deployed to another city on short term assignments, leasing a car is a great solution rather than having their vehicle transported.
- Leasing eradicates the hassle of usage like unexpected failures. Loans a car for moving when the leased car is unavailable.
Cons of leasing
- If the car is consistently leased, you will end up making payments. In this way, you will never own a car.
- At the lease expiry, if you plan to buy then the cost can be higher than what you would at the start.
- There is an annual mileage limitation and for adding extra you get charged. If you cover extensive mileage, then leasing is not for you.
- If you don’t want the car as it is unaffordable or due to other reasons, exiting early from the lease contract is expensive. Early termination fees are hefty.
- The majority of leasing companies need you to get high insurance coverage that can be costly.
Understand the term ‘Wear & Tear’
You will need to get familiar with the maintenance because many drivers abuse the vehicle they leased. The three basic rules to bear in mind, when you use a leased car are –
- The car has to be returned roadworthy.
- Ensure to get the car serviced as per the schedule and make sure it gets recorded in the car book.
- The car needs to get serviced or repaired according to the terms in the contract.
- Make sure to regularly check under the car hood and change the oil as mentioned in the manual.
- Take care of it as your own vehicle and get parts or damages repaired or replaced if necessary.
Ensure that the wear & tear standards are reasonable at the lease expiry when you return.