Buying a car is much more common than entering into a lease. But vehicle leases are an option that some people might want to consider. In general, they do not offer as much value as purchasing a car, but there are some exceptions to this generalization.
Like a rental agreement or lease on a property, a lease on a car grants the lessee the right to use the item in exchange for a monthly fee. When the lease is up or the lessee stops paying the fee, the car returns to the dealership or entity that leased it out. It should not be confused with car loans, where the user also makes monthly payments, but these eventually end when the car is paid off.
Because people become familiar and comfortable with the car they are driving, most dealerships offer lessees a chance to purchase their currently-leased car at the end of the contract. However, after paying the monthly fee during the lease period, and then adding the purchase price, this often comes out to more over the life of the car than just purchasing a new one.
However, for people who are determined to drive a very new car at all times, leasing is usually cheaper than purchasing and re-selling cars on a regular basis. This allows lessees the opportunity to drive a car that would be out of their price range if they had to buy it. Additionally, car repair incidents are usually less costly and less frequent with newer cars.
Aside from the cost issue, however, there are other considerations regarding vehicle leases. One of these is the fact that the car is not actually yours, and there will be rules regarding how its use. Leases usually include a set number of miles per year that the lessee can drive for the base rate, but often have steep fees for going over that mileage. And customizing the vehicle in any way is usually prohibited.
Leasing a car is a viable option for people who want to drive a more expensive car than they can afford to purchase. But being aware that this is a more expensive option than outright purchasing a cheaper car is important. Only people who can live within the restrictions of a lease should consider this possibility, as well.
Like a rental agreement or lease on a property, a lease on a car grants the lessee the right to use the item in exchange for a monthly fee. When the lease is up or the lessee stops paying the fee, the car returns to the dealership or entity that leased it out. It should not be confused with car loans, where the user also makes monthly payments, but these eventually end when the car is paid off.
Because people become familiar and comfortable with the car they are driving, most dealerships offer lessees a chance to purchase their currently-leased car at the end of the contract. However, after paying the monthly fee during the lease period, and then adding the purchase price, this often comes out to more over the life of the car than just purchasing a new one.
However, for people who are determined to drive a very new car at all times, leasing is usually cheaper than purchasing and re-selling cars on a regular basis. This allows lessees the opportunity to drive a car that would be out of their price range if they had to buy it. Additionally, car repair incidents are usually less costly and less frequent with newer cars.
Aside from the cost issue, however, there are other considerations regarding vehicle leases. One of these is the fact that the car is not actually yours, and there will be rules regarding how its use. Leases usually include a set number of miles per year that the lessee can drive for the base rate, but often have steep fees for going over that mileage. And customizing the vehicle in any way is usually prohibited.
Leasing a car is a viable option for people who want to drive a more expensive car than they can afford to purchase. But being aware that this is a more expensive option than outright purchasing a cheaper car is important. Only people who can live within the restrictions of a lease should consider this possibility, as well.
About the Author:
Car leasing provides you with an opportunity to drive a new car every two to three years. You can find details about the benefits of van leasing, now.
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