The Good and The Bad
Are you searching for a new car? Then you’ve probably considered leasing and want to know the pros and cons of leasing a vehicle! Leasing is often an alternative to buying a car and provides the consumer with a low commitment way of trying out a new vehicle. Want to learn all about the pros and cons of leasing a vehicle? Let the experts at myHopscotch break down the advantages and disadvantages of leasing a vehicle. After you’ve read our quick guide on the pros and cons of leasing a vehicle, you can decide whether you want to lease or you want to buy new!
Advantages of Leasing a Vehicle
There are plenty of pros and cons of leasing a vehicle, and you’ve probably heard about some of the best parts when it comes to leasing. Here are a few pros:
No Negative Equity
First of all, you’re guaranteed to have no negative equity, unlike if you were to purchase a new model. When you lease, you have a contract of your monthly payments and how long your lease will last. Normally these payments cover the cost of how much the vehicle will depreciate during your ownership, so there won’t be any kind of negative equity when you return it to the dealership. When you purchase a new vehicle and try to trade it in a few years later, you will probably end up owing more on your loan than the car is currently worth.
New models for most brands come with a minimum of three years of coverage under a manufacturer’s warranty. Lease terms often last this long — or shorter — so you can be confident knowing that any normal wear and tear and unexpected repairs will be covered under the original manufacturer warranty.
On a conventional purchase like buying a new car, sales tax is required to be paid upfront. However, when you lease a vehicle, the tax is paid on a monthly basis as a percentage of each payment. This way, you don’t have to worry about large upfront costs.
Disadvantages of Leasing a Vehicle
We aim to go over both the pros and cons of leasing a vehicle because we believe in providing a transparent buying experience. Some of the cons include:
Standard leases are set up for the vehicle to be driven 12,000 miles a year. If you drive more than that, it could cost you additional money. However, if you drive less, it is possible to save money on your lease by setting up a lower mileage on the contract. Just ensure you never get talked into a lower mileage lease if you know you’re a high-mileage driver.
If you tend to use your vehicle for extreme off-roading or other activities that make it difficult to keep your car in good condition, leasing isn’t for you. Part of the contract is to return the vehicle in good condition, otherwise, you may be faced with additional costs.
Only New Models
This one can be both a pro and con of leasing a vehicle. In most states, dealers can only lease new models, which simply means the pricing will be higher than a used model purchase or lease. However, leasing can certainly have its benefits when it comes to high-priced exotic models..
There are many pros and cons to leasing a vehicle, but your decision ultimately depends on your situation and your personal preferences! Not sure if leasing a vehicle is right for you or not? Contact myHopscotch, and we can help you explore your options and will save you both time and money when you’re ready to find the perfect vehicle to take home.