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  • While leasing a car offers benefits such as lower payments and the ability to upgrade to a new car every few years, there are specific drawbacks that can offset these benefits.

    Leasing

    According to USLegal Definitions, a car lease allows you to drive a car while only paying for the depreciation value during the time you are driving it. Unlike a loan, your payments do not contribute toward ownership of the vehicle.

    End of Lease

    At the end of a lease, you are required to turn the car in or buy it. If you cannot pay cash, you forfeit the car or take out a loan to finance the same vehicle you have been making lease payments on.

    Early Termination

    According to LeaseGuide, early lease termination often costs more than people anticipate. Depending on the amount left on the lease, early termination can cost thousands of dollars.

    Mileage Restrictions

    If you own a car, you can drive it as much as you want. Lease agreements will restrict you to a certain number of miles, usually between 12,000 and 15,000 per year.

    Wear and Tear

    According to to the Digitals Federal Credit Union's consumer education program, the leasing company charges you for excessive wear and tear when you turn in the vehicle. "Excessive" is defined by the leasing company.

    Source:

    StreetWise: Auto Leasing Guide

    US Legal Definitions: Motor Vehicle Lease Law and Legal Definition

    LeaseGuide.com: Get Out of Car Lease Early

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