Leasing a car isn't for everyone. If you're like me and keep your car for
many, many years then leasing isn't for you. If however, you don't get
"attached" to a vehicle as some of us do, and you like having a new car every
few years then leasing may be for you.
Today's cars are built very well and you can expect to get a good amount of mileage
from your car. You can expect at least 100,000 miles. If you purchase a car you may have
five years of payments, but your car may last eight to ten years. This means three to five
years of no monthly car payments. However, as you car ages, the need for upkeep goes up
too. With more mileage on you car things start to break down and costs to keep your car up
mechanically may go up. It's doubtful though that what you pay out for maintenance and car
repair will ever be as much as monthly payments would be.
When you lease a car you make monthly payments as you would if you purchased a car
outright. But, when a lease is up you have nothing to show for it. These monthly payments
may be somewhat less than if you were buying the car. Leasing a car usually requires large
down payments and security deposits, taxes and fees. It isn't necessarily cheaper up front
than buying a car. Also, when you lease a car you have mileage restrictions. A lease
generally allows between 12,000 and 15,000 miles annually. If you go over that amount you
pay for each mile. This can really add up.
Leasing doesn't mean you don't have to pay for upkeep. You are held to the
manufacturers specified servicing schedule for your vehicle. If you don't have the
required maintenance performed this can void your lease. If you want to end the lease
early there are generally large termination fees. At the end of your lease, if there is
damage to the car or if there are missing parts you will be charged for them.
Make sure if you are considering leasing a vehicle that you understand all the fine
print in the contact and all possible extra costs before signing on the dotted line.
