If in the market for a new car, you may think about the different financing options available. Leasing is a popular option for many drivers and, depending on some factors, this option may be the right fit for you. Like any big financing decision, leasing a car comes with its advantages and as well as disadvantages. Here we’ll cover the pros and cons of leasing a car so you can make the best choice for your needs.
A thing many people enjoy with leasing a car is the flexibility of lease terms and trading in for an upgrade every few years. If you fall in love with the car, you can choose the same model or choose something completely different. And if parting with your leased car is unthinkable, you can take advantage of the purchase option.
When leasing a car, the upfront costs is generally less than purchasing. Often, the down payment is less with a car lease. Taxes and fees still apply. Besides lower upfront cost, monthly payments can be lower, too.
A third benefit worth mentioning is lower maintenance and repair costs. Often newer leased models are under manufacturer warranty. This means less out-of-pocket money for you.
Leasing is a great option for a lot of people but carries some drawbacks. One of these cons is the mileage limit. Leased cars have a capped mileage and when the driver exceeds that limit, fees accrue.
Although general maintenance and repairs are covered under warranty, added wear and tear on the car can result in added fees at the end of the lease.
Last, a leased car does not build equity. Since you do not personally own the vehicle, it does not qualify as an asset or trade in for a new car.
Visit Bill Utter Ford in Denton. We carry new, used, and certified vehicles and can help you with financing options.