When moving forward to buy a car or taking it in lease, certain things confuse the most. In order to avoid getting into hassles, customers ignore the leasing options even if it is beneficial to them. Therefore, there are three most important things what people should consider before buying the vehicles as they research on pros and cons between leasing and purchasing.
- Less Expensive: Low monthly fees are offered by leases than loan payment. So those who are not qualified for a regular car loan due to limitations in income or debt can try this less expensive option. The car will be proved beneficial and of course less expensive if you are in plans of using it for many years until it stops working. In this case, you can take out a loan and buy the car straight away which will be perhaps prove less expensive. On the other hand, the overall price can be less if you go for leasing option where you’ve planned to trade the car in every three years.
- Make it Negotiable: Most of the car buyers do not know that a lot of lease agreements can be negotiated. If leasing benefits you, then try to take down the cost quite more before signing the contract. You got to look after the capitalized cost at first. Bringing the cost down goes equally with lowering the selling price when you go to buy a car. While comparing the lease to another, you should consider the money factor since it is similar to the interest rate on a car loan and affects your monthly income in a straight way. At the end of the lease, value of the vehicle or the residual value is the other factor to consider. So you can look out for national lease promotions that offer by the manufacturers. There are many benefits that one can enjoy including the money saving option.
- Flexibility: Leasing a vehicle means receiving many options at the end of the contract. Lower value means loss to you. The resale value or the trade value should be satisfying enough. Once you lease a vehicle, you buy the future options through which you can make decisions and make them work on your favor for at least 2-3 years down the road. Better flexibility includes all the options that keep you away from worst situations and pay the bill on behalf of you. For e.g., you car met an accident and is severely damaged within 1 years out of 2 years lease agreement, but the insurance company has covered the repairs. Through lease you can stay away from worst circumstances such as you leased a big SUV before the price of gas mounts up above $4 per gallon. High demand vehicles if leased offer great benefits. You can trade it as per the current higher market value and use that equity to buy or lease the other vehicle. Also after the purchase, you can drive it by yourself or sell it privately by turning this equity into cash.