Reasons NOT to Lease a Car

A lease is different than buying a car in that instead of paying the entire cost of the car up front, you’re only paying it over the course of the term of your lease. You might want to consider leasing a car if you’re not sure about your long-term finances or need to leave the country before you’ve paid it off. But there are some things to consider before you sign on the dotted line – here are some reasons not to lease a car!

The true sense about of leasing

What are the costs of leasing? There are two main types of leasing: closed-end and open-end leases. Closed-end leases offer fixed monthly payments for a predetermined amount of time. Open-ended leases provide no set term, meaning that they can be terminated by either party at any point in the lease.

Leasing is not the same as buying. When you lease, you sign away your right to use or resell the car when it's all said and done. Unlike owning a vehicle, which means that once you've paid off the car (or had the loan forgiven), it belongs to you. You're free to do what you want with it - drive it into a lake if you so choose! 

Also, there are often incentives and programs available for new buyers that aren't offered on leases; this includes tax credits and rebates on gas efficiency. 

Finally, there's nothing like getting into a brand new car after making just one payment versus making twelve - plus interest!

Read this information's about 10 reasons not to lease a car After you reading so you could make realized the actual truth of car leasing !

The risks of leasing

Leasing has its benefits, but it also comes with its risks. The biggest risk of leasing is that you will be paying for the depreciation of your car as well as the monthly lease payment. This means that while your monthly payments are relatively low, you will end up paying more than if you were buying the car outright. Additionally, if you want to get out of your lease early or change cars before the duration of the lease is over, there may be an extremely hefty fee involved.

The hidden fees

Leasing cars has become a popular option for vehicle ownership. There are many advantages of leasing that make it seem like the best way to go. However, there are also some disadvantages that make it not as great of an idea as you would think. The following is a list of reasons why people should not lease: 

Hidden fees First and foremost, leasing has hidden fees. When leasing, the owner pays monthly payments and they pay those same monthly payments whether or not they drive their car. If you are considering getting into leasing, please be aware of this! There are so many other ways that you can save money on your car by just buying instead of leasing!

The mileage restrictions

Leasing cars is often seen as the smarter option because you don’t have to worry about buying a car, but it comes with its own set of restrictions. For instance, the mileage on leased vehicles is limited and you may be required to pay an excess wear and tear fee if the miles exceed the allotted limit. For example, if your lease allows for 10,000 miles per year but you drive 15,000 miles in that period of time then you could be charged $0.10 per mile for each mile above 10,000. In other words, if you exceeded your allotment by 5,000 miles then you would have to pay $500 extra at the end of your lease term.

Mileage restrictions aren’t only for leased vehicles. It’s common for car dealerships to offer cars on mileage restriction contracts, which can be even more expensive than leases when you exceed your limit. For example, instead of paying $0.10 per mile over your lease’s limit, you might be charged 10 cents per mile over each of those miles plus a base fee of $200 in excess wear and tear fees. Some dealers will let you buy out your mileage restrictions but that could cost you an additional $10,000 to $20,000 depending on how many miles are left on your contract at time of purchase.