Yes, You Can Lease a Used Car
You’re probably investing for the very first time in your life and you’ve been going bonkers deciding what is best for you. If you’ve been puzzled about whether to invest in a brand-new car or to simply borrow a used car on lease, this article may just help. By listing out pros and cons of a car lease, you’ll know what to do once you read through.
Lease Payments vs. Loan Payments
If you compare the monthly lease payment with a monthly loan payment, you will understand how much you can save through a lease contract. However, on the other hand, if you keep investing on a lease vehicle year after year, you’re not investing wisely. If you think you will keep the vehicle for yourself and use it in the long run, you could as well invest in a monthly loan payment. This way you will know for sure that you have an asset to sell in case of an emergency.
New Vehicle Purchase Every Two-Three Years
If you’re someone who prefers changing vehicle brands or models every few years or even months, then opting for a used car or lease contract would make a lot more sense. When you lease a two-year vehicle contract, you can get yourself a different car every two years. Not just a new car but a new warranty and possibly a maintenance schedule. This way, if you don’t like the car you’ve invested in, you could have it switched in no time.
Hassle-Free Lease Contract
If you dread paperwork, leasing a vehicle may just do wonders for you. At the end of the lease contract, you could either renew it or simply hand over the keys and walk away.
Incentives Along the Way
The best part about leasing a car compared to buying is the down payment factor. When leasing a car, your down payment is usually fairly low. This, however, will not be the case when buying a car. Additionally, when leasing a vehicle, you will only be required to pay a monthly tax as compared to a brand-new purchase which would mean a solid tax on the total cost of the vehicle.
Some Cons to Consider:
Damage to the Vehicle
One of the cons of leasing a vehicle is the maintenance amount you will need to incur in case of an accident or possible damage. Not only would you have to pay the damages but also drive it through that particular tenure. A purchased vehicle, on the other hand, would automatically back you up with insurance.
Contracts Do Not Change
Say you lease a vehicle and lose your job a few months down the line. Now because you’ve signed a contract, you will not be able to back off and will have to find a way to pay the monthly lease. A purchased car, on the other hand, would give you the liberty to sell it or trade it in.
In all, take the time to make the right decision for you. Weigh all pros and cons before leasing a car even though a lease contract comes across quite beneficial.