Buying a new or used car allows you total freedom. You have full rights to the vehicle, can go anywhere at any time, and can customize it however you like. Though purchasing a car can be expensive, loans are available but become costly because of interest, processing, disbursement, car valuation, late payment, and other extra fees. In addition to the monthly payments one must make, you may eventually pay more for your loan than the vehicle’s actual value.

Leasing a car may be a better option for many people. This means paying to own a vehicle for a certain period, depending on your needs and the lessor’s terms. You can extend your lease and continue using the car when the agreed period ends. Alternatively, you can buy it from the owner or choose another car to lease.

There are several disadvantages to leasing a car. For instance, you won’t have full rights to the vehicle and much more. This article provides well-explained pros and cons of leasing a car to help you choose whether it’s a good option. If so, find a reliable and reputable lessor. However, consider buying or working with a car subscription service if it isn’t.

Here are the merits and demerits of vehicle leasing:

Pros Of Leasing A Car

There are several advantages you could enjoy by leasing a car. Below are some that may convince you further to consider the option:

• Lower Monthly Payments

Leasing is a good alternative if you don’t have enough money to purchase a new or used car. And this is a good option if vehicle loan terms don’t seem friendly. Generally, with leasing, you’ll incur lower monthly charges. These fees are often cheaper than the actual high car purchase cost. They’re also lower than the monthly fees, interest rates, and other car loan charges.

• Access To Many Car Options

Some makes and models may be too expensive. However, leasing allows you access to any vehicle of your choice at low monthly charges. So, you’ll have the pleasure of getting a car with advanced features and the latest technologies.

Once your leasing period ends, you can renew it and continue enjoying your ride. Alternatively, you can pick the next best car available. This is much better because you don’t have to worry about depreciation and resale costs when upgrading to a new vehicle.

• Low Maintenance Costs

Many car dealers and manufacturers may offer buyers a three-year warranty. If you choose to purchase, you’ll cover all the car’s maintenance costs once the warranty expires.

This might be different with leasing. The dealer or manufacturer will cover repair and other maintenance costs if you use the vehicle while the warranty is still active.

When your lease ends and you choose to return your car to the lessor, you won’t be responsible for any maintenance costs since you don’t own it. That said, some warranties don’t cover accidental damages. So, taking proper care of your leased car is vital.

Having learned the merits, you may be interested in leasing. However, there are also some cons you should also consider.

Cons Of Leasing A Car

Leasing a vehicle has its disadvantages, too. Below are three well-explained demerits you should keep in mind if you’d like to consider this option:

• You Won’t Own The Car

Leasing a car doesn’t give you total ownership of it. Some owners will have strict restrictions. For instance, they can limit how far you should drive the car and deny you the right to make modifications.

Besides, since the vehicle isn’t yours, you can’t do a trade-in if you need to upgrade to a more advanced make or model. Also, you can’t sell it if you need cash for an emergency or use it as collateral if you want a loan.

• Extra Charges At The End Of Your Lease

Additional fees may also apply at the end of your lease. For example, if you exceed the agreed mileage, the owner may charge for that. Also, if you modified the car in any way that wasn’t allowed in your contract, the lessor may require you to pay for the changes. Moreover, some owners may need you to cover cleaning costs when your lease ends.

Furthermore, if you cause damages or the lessor can spot excess wear and tear, they’ll charge you. Besides, a car owner may require you to pay for an early termination cost if you choose to end the lease early.

• It May Be Expensive In The Long Term

Leasing a car may be a cheaper option at a glance. However, besides the acquisition fee you pay to get the vehicle, you’ll also pay extra charges when the lease ends. If you consider this option for several years, you’ll pay for such expenses repeatedly. Ultimately, you’ll discover that  leasing will be more expensive than buying a car in the long term.

Some car owners may entice you to take a leasing deal quickly. However, before signing a contract, consider the cons provided above, too. This way, you’ll make a more informed decision on whether leasing favors you.

Final Thoughts

If buying a car seems too expensive, leasing may be a great option. It’s much cheaper, and you’ll access various vehicles. And maintenance costs on your side will be lower. However, there are some disadvantages to leasing a car. For instance, you won’t have full rights to the vehicle, and the owner may charge you additional fees after your contract ends. Besides, leasing can be more expensive in the long term.

If you’d like to lease a car, don’t just consider the benefits you’ll receive. Consider the disadvantages of this alternative. This way, you’ll make a more informed decision on whether the option is good for you.