Car leasing is definitely a lucrative option but before we understand the advantage lets take a look at what car leasing is. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. This payment is the difference between the car’s current value minus its expected value at the time of the lease expiry. This amount is equally divided over the lease period and added to the monthly interest. If your credit rating is good it will not take you more than two days to get your new car. Once the lease expires you can choose to buy the car or to just hand in the keys and walk away.
Advantages:
The primary advantage of leasing a car lies is the fact that you can get a new car for a very low price. Most people rarely go for lease durations that exceed one year which means that you can drive around in the latest models each year. And the timing is perfect because most new models are introduced in fall which means that you can get a new car for Christmas.
Most establishments that deal with auto leasing have the more upscale models which are always brand new.
One of the problems if owning a car is that you have to take care of all the expenditure involved in maintaining it but when you lease a car it is covered by a warranty because it is brand new. So if you meet with a minor accident the dealership will take care of all the structural damage
The monthly payment is significantly lower, almost 30-60 percent less than what you would normally pay if you were to own the car. You can also trade in your old vehicle to get a reduction in the down payment or the monthly payment
Leasing a car is considerably hassle free as compared to owning a used car which would involve not only buying it but also selling it eventually, plus the insurance is taken care of by the dealer when you lease a car.
When you lease a car you are also offered free gap protection which covers you in case of loss due to accident or theft.
Disadvantages:
Unfortunately a leased car cannot be included in your assets list because you dont actually own it.
You will of course have to incur a loss over the buying price when you sell an owned car but at least the balance is yours.
Not everybody is eligible for car leasing and you will need to check with the dealership beforehand
However, the biggest issue with car leasing is the fixed mileage. What this means is that you will have to pay extra for each mile above a predetermined limit which is set when you sign the lease To read more about this and virtual currency then visit the link in this sentence.
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