Is leasing a Car Waste of Money?

W RLD WIDE www.WorldWideAutomobile.com AUTOMOBILE 175 IS LEASING A CAR WASTE OF MONEY? UNDERSTANDING CAR LEASE PAYMENTS When you lease a vehicle, the dealer will usually need you to make a down payment on the lease. This is called a capital reduction. It is like paying a portion of the lease upfront. Then you will have to pay monthly payments on the remaining lease balance for the span of the lease. Generally, these payments are lower than they would be if you were buying the vehicle because you're only financing the portion of the car value that you'll be utilizing over the 2-4-life years of the lease. The lease will require you to meet to KNOW ABOUT MILEAGE LIMITATIONS One important factor to consider is mileage limitation. You can drive the leased car for certain miles as mentioned in the agreement. The mileage limit is often set for years, for example, 10,000 or 15,000 miles per year. If you exceed those limits, you will have to pay a per-mile charge. Some car leasing services let you buy additional miles up front or negotiate a per-mile rate to pay at lease-end if you exceed set mileage limit. You are also liable to pay additional charges for damages or worn out tires during your lease period. WHAT ABOUT MAINTENANCE ON LEASED CARS? You are required to get your leased vehicle serviced. When you lease is over, you will have the option to buy the car for its residual value by buying out the lease, or you can turn the vehicle in. You need to get everything in writing regarding maintenance requirements. UNDERSTANDING THE BENEFITS OF LEASING A CAR Also, consider the pros and cons of car to determine if leasing a car waste of money or not. HERE ARE SOME PROS OF LEASING A CAR: Lower monthly payments than buying the car. You can try new model every few years. No need to perform major car repairs as leasing company will take care of them. BUT THERE ARE SOME CONS TO0: You have to make payment if you continue to lease. You end up nothing to show for your money when lease is over. Over mileage charges might be imposed It's not easy to get out of car lease without penalty. Is Leasing a Car Waste of Money or Not? So you must have understood the various factors associated with leasing a car. Based on this, here is the answer of the question: Is leasing a car waste of money or not? First of all, if you are looking to keep the car for only 1-3 years on lower down payments, leasing can work for you. If you plan to drive a new car every 2-3 years, leasing is a suitable option for you. Plus, there is no hassle of reselling it in the market. The answer to question "Is leasing a car waste of money?" can be YES if you don't have a stable, predictable income. If you likely to drive on long routes that can exceed set mileage 9818 4TH AVENUE, BROOKLYN, NY 11209 (718) 748-2886 п