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Everything You Need to Know Before Leasing a Vehicle

Everything You Need to Know Before Leasing a Vehicle
 
Deciding whether to purchase or lease your vehicle can end up being one of the most important aspects of the car buying process. It’s important to know what you’re getting into when leasing a vehicle, and realize the benefits and weaknesses of doing so. Read ahead for a better understanding on how leases work, so you can make a more informed decision when buying your new vehicle.
 
Determining Your Monthly Budget
Since you’re only paying for the depreciation of the vehicle in a lease, you’ll ultimately have lower monthly payments than if you choose to finance. However, if you’re someone who prefers to change up what they drive every 3 to 4 years, then it really shouldn’t matter.
 
Getting Out Early
While it’s possible to get out of a lease early, you’ll likely end up facing an early termination fee. This may offset the financial advantages you gained when leasing a vehicle in the first place.
 
Your Driving Habits
Since the dealership will ultimately try and sell your vehicle after your lease is up, they’ll want it to be in good shape. As a result, there’s normally a mileage allowance in the lease. If you exceed this amount, you’ll have to pay extra when you return the vehicle.  If you have a long commute to and from work, chances are you’ll end up pushing the limits of this allowance. In this case, it may make more sense for you to finance the vehicle as opposed to leasing it.
In addition for overage fees, you can also be charged if there is excessive wear and tear to the car. Therefore, it’s still important to properly maintain the vehicle over the lifetime of the lease. Fortunately, you may be able to get some of your repairs covered, since your car will most likely be under warranty with the lease.
 
What to Do When Your Lease is Up
Once you have returned your vehicle in good shape, there are a couple things you can do moving forward. Either you can start a lease with a new car or you can buy the vehicle you were leasing outright if you were satisfied with it.
 
Driving the Car of Your Dreams
While there’s no need to go overboard when leasing a vehicle, it does give you the ability to drive something a little more luxurious. If you’re someone who likes to hop on the newest trends, or just want to take advantage of some of the new safety and other features available on the market, leasing would appear to be the superior option for you.
 
When You Should Lease                            
If you don’t have a lot of money up front, but still have a constant flow of cash, then leasing may be the right option for you. It will cost you less than financing it, and can also allow you to drive something a little more expensive. Not being able to own the car can be troubling for some, but it really shouldn’t make a huge difference if you weren’t planning on keeping it for a long time anyway.