Car leasing has a lot of great options, and can offer a little more than buying a car, but is not for everyone. Before deciding to lease you should think about the advantages and distadvantages and whether or not they work for you.
Lower Monthly Payments
When you lease you pay lower monthly payments. The reason that you pay lower monthly payments is because you pay for only the part of the car that you use. The monthly payments can go up to 65% lower than if you were to buy the car.
Since the payments are lower, that means you can lease a car more expensive than if you were to buy one.
Fewer Maintenance Headaches
Leased cars come with a full warranty, which means that you have car problems to deal with. Also, the fact that you only own the car for a few years you do not have to deal with the wear and tear of time on the car.
Lower Upfront Cash Outlay
Because down payments are not required when leasing, which leaves you with more money in your pocket? If you want lower monthly payments, you do have the option of making a down payment, or trading-in your old car.
Lower Tax Bite
In most of the US states and in Canada, you do not pay for taxes on the whole car when leasing. Instead, you pay taxes on the part of the car that you use. The taxes are also spread out throughout you monthly payments; you do not pay them all at once.
No Used-Car Hassles
Because it is a lease, you do not not have to deal with the problem of selling it. All you have to do is give your keys to the dealer and pay any fees that you owe, if any, and walk away. You do have the option at the end of your lease to buy the car, or trade it for a newer one.
Gap Coverage Included
Gap Insurance is insurance that pay off whatever you owe on the car, if it was stolen or totaled in an accident. This often comes automatically with the lease. This often times does not come with loans, they have to pay the rest of the car, but they can get this option separately.