April 16, 2024


The ideal Automotive

Avoid these dangers when leasing a car

How Does Leasing a Car Work? - Experian

Leasing a car can be a good option if you want to have all the benefits of owning a car without actually owning one. A lease is a financial agreement between a dealer or leasing agency and yourself. A lease agreement is usually for the period of around 2 to 3 years. Leasing is a good option if you are looking for a short term car lease without the hassle of buying a vehicle. The cost of leasing a car is also a lot more affordable than the payments would be if you bought one. Reading reviews of leasing agencies or dealerships can help you make the decision of who to lease your car from. Sites such as US-Reviews.com are perfect for this, as you can search anything from car dealerships to lease company reviews.

While leasing has many advantages, there are also many dangers of leasing a car:
1) A lease agreement usually lasts for 2 years. After this time you would need to look for another car. Monthly payments might be lower with leasing a car, but you are not able save in the long run as there are always payments to be made.

2) A lease agreement is very difficult to get out of. Ending your lease agreement early, before the end of the contract, could leave you liable to pay penalties like early termination fees. This penalty is usually a lump sum of what you still owe towards the lease agreement.

3) You are not allowed to make any modifications on your lease car. Dealerships and leasing agents might want to sell the car as a used car at the end of your leasing term, and would therefore prefer that the car remains in stock condition. Making any modifications could also result in a void of the manufacturer’s warranty.

4) Lease cars come with mileage limits. These are generally an amount of 12 000 to 15 000 miles per annum. This is to reduce the amount of wear and tear on the vehicle, and also to ensure that the car is not returned with excessively high mileage at the end of the lease term. You can opt for a higher mileage limit, but this will cost you more.

4) Your credit score can determine the monthly payments of your lease car. While those with a poor credit score are not necessarily turned away, their monthly payments will be higher than those with a good credit score.

5) Leasing agents require you to have a high level of insurance coverage which can push up your monthly costs.

6) There are lots of fees involved in leasing a car. These are the acquisition fees, paid at the beginning of a lease, the disposition fee, paid at the end of the lease term and wear and tear fees when returning your lease car. Dealers and leasing agents charge more for scratches and dents.

7) Leasing a car can be very confusing if you do not know the ins and outs.