Leasing a Car: Is it a Good Idea?
Gone are the days when cars are luxury items. Nowadays, cars have become a necessity. Along with the fast-paced lifestyle, many people need cars.
If you wish to drive a car but do not have enough cash to buy a new one, your next option is to lease a car. But before you decide on leasing a car, you have to weigh the advantages and disadvantages first.
One good thing about leasing a car is that you have the option to stick with the car or not when the leasing period is over. In most cases, the leasing period lasts for 2 or 3 years. Should you decide to buy a car and opt for a bank loan, you have to commit at least 5 years.This is one of the biggest decisions one has to make when choosing on which car to take. Many tend to commit the same mistakes over and over again, considering the fact that they have not taken time to research on which car they have to lease. This is something that you have to avoid – it doesn’t just save you time and effort, but money as well.
Another thing in waterloo iowa car dealerships, you do not have to shell out much cash if you lease a car. You do not have to pay for the down payment for the car, which could be 20% of the total contract price. When renting a car, all you need to pay initially are the advanced payment (first month) and the security deposit. The security deposit will be used in case there will be damages to the car like seat stains, door dents or tire change when you return it at the end of the leasing period.
As for the monthly due, you will have to save around $600 if you buy a new car. If you choose to rent, you will spend 35% or 55% less. The money that you could save monthly can be spent for other bills.
You might want to discuss with the lessor if it is possible for you to just pay off the residual value or the remaining balance. If the lessor agrees, then you could own the car. Don’t forget to have a written agreement prepared.
Lastly, when you lease a car, you do not have to worry about how to or to who to sell the car to in case you do not want it anymore.On the other hand, leasing a car also has its disadvantages. First, you pay monthly for the car but you do not own it. It is still the lessor’s property. Even if you pay for the duration of the 2 – year leasing period, you still do not own the car.
Since you do not own the car, you cannot make any modifications to it. You cannot just add new gears or sound surround. You cannot customize the seat cover or anything inside the car. This is similar to renting a house. You cannot just renovate the house the way you want to.
At the end of the day, the decision is still up to you. Whether you will lease or not, you have to weigh the pros and cons first.