Leasing a Vehicle: The Good and The Bad

Author: Amy Farley

Are you in the market for a new vehicle? If so, then you're probably trying to make a number of difficult and complicated decisions, including whether it makes more sense for you to buy a vehicle or to lease a vehicle.

We've compiled some important information about leasing a vehicle, both good and bad, to help you make your final choice.

• Leasing is a great idea—for some. Different people want different things. For some people, leasing a vehicle might be the very best option, while for others, buying a car makes much more sense. Don't discount either option before you review all the information.

• When you lease, you can get a new car every few years. This is one of the primary benefits to leasing. If you are the type who likes to upgrade every few years anyway, or if you don't know what kind of life situation you'll be in in just a few years and don't want to make the commitment of choosing a vehicle, then leasing might be right for you. After the term of your lease is over, you can choose to lease a new vehicle (or buy one)!

• Leasing often means a lower down-payment. A bigger down-payment can mean lower monthly lease payments, however, so you'll need to decide which works best for your financial situation.

• With a lease, you pay for the car you use. You aren't responsible for the entire cost of the vehicle, only the depreciation while you're using it. This means your monthly payments will be lower than if you were buying the vehicle and financing it.

• Leasing means no equity. You aren't making payments toward owning your vehicle—you're just leasing it. This means that you won't eventually own the car free and clear, like if you had bought it and were making payments on it.

• Mileage and distance limitations. The terms of your lease may include limitations on how much and how far you can drive. For every mile you drive over the limit, you may pay a fee. That fee can add up! If you plan to drive long distances or are unsure how much you'll be driving, you may want to consider buying instead of leasing.

Leasing a vehicle just may be the right decision for you. Or buying might be better! Either way, it's important to decide before you begin the process of choosing a new vehicle.
Still have a lot to consider? The friendly staff at Metro Honda would be happy to help you by providing more information about leasing a vehicle as well as buying a vehicle. Just stop by our Jersey City, New Jersey Honda dealership today to learn more!

Posted in: Automotive