The monthly payment is lower than when buying a car. In some cases there is no down payment at all.
Leasing puts the driver in a new car every two or three years. For some consumers, this is an important lifestyle consideration. Leasing also allows consumers to drive a more expensive vehicle than they can afford to buy.
Leasing is easier since negotiating over the price is downplayed. But remember, you can still negotiate the terms of a lease.
Vehicles are subject to wear as they age. A lease allows consumers to side-step the issue. By the time the car usually needs expensive repairs, the lease will have ended.
There is no hassle with a trade-in at the end of the lease.
Current tax law considers many of the expenses of a lease car used for business to be tax deductible.
Disadvantages Of Leasing
When the lease ends, you have built up no equity in a vehicle. You have nothing to trade in on a new car, so you will probably lease again.
If a lease runs longer than the vehicle’s warranty, the lessee may have to pay for repairs that would have been covered.
In most cases, leasing is more expensive than buying on credit.
Maintenance requirements for leased vehicles are strict if the lessee hopes to avoid end-of-lease charges. A lessee should honor the manufacturer’s recommended maintenance schedules and should have written receipts to prove that service was performed as required.
Early termination of a lease may result in substantial charges to the lessee.