How to Determine if Leasing a Car is Right for You

So you need a new car and are looking for the most feasible option. While leasing a vehicle may seem like the easiest and most cost effective option, this article will discuss the good and the bad, and how to determine if leasing a car is the right decision for you.

The appeal
Leasing a car is a very appealing option to many people, and for multiple reasons. If you aren’t a commitment person leasing a car may be for you. While you will be tied down to a contract, you will have your choice in the length of the contract, the amount of miles and ultimately the amount of your monthly payment. In most cases, you will be able to turn your car in within two to three years for a newer model or different vehicle. Lease prices are typically negotiable as well as the interest rate, which may not be as common when buying a new vehicle. New vehicles also decrease in value immediately leaving the lot, whereas leases are calculated to be the amount of the cars worth now and the value of what it’s expected to be when you return it.

Costly traps
There are some things you need to be aware of when leasing a new vehicle. You should always be aware of the fine print when shopping for a car lease. While the price advertised may look like a steal, typically, that is the best price they are willing to offer- after lease loyalties, family programs and military discounts. They may also require you to put down a certain amount of money in order to qualify for the lease payment advertised. Those who drive long distances or use their car excessively need to be aware of the annual mileage allowed by their lease agreement. Most agreements allow for 10,000 to 12,000 miles per year, but charge up to 20 cents per mile over this amount.

If it doesn’t work out
So you’ve leased a car and need to get out of it. Turning in your lease early is a costly option due to the penalties and fees you will face. Fortunately there are a few other options to consider. Some dealerships may allow you to trade in your vehicle early. Payments and fees are then rolled over to your new monthly payment, making it higher than usual but allowing you to pay over an extended period of time. There are also companies online that allow for lease swapping. This means that you can list your car and its payment terms, and if a buyer is interested the site will connect you and facilitate the process of transferring the lease. You will no longer be stuck with the car or payment and won’t endure any of the penalties if you had turned it into the dealer. However this process needs to be researched more to make sure you fit the terms outlined by the company.

In conclusion, there are many things you must consider before committing to a car lease, the biggest revolving around the lease agreement. Decide how much money you are willing to put down, as well as per month on the vehicle. Determine how long you will want the vehicle for and roughly estimate your annual mileage, then shop around and find a lease that’s perfect for you.