Advantages and disadvantages of leasing a car?

Answer 1

There are obviously pro's and con's to leasing a car, however I'm not going to go into that here.

I've found a useful source of information from Nationwide Vehicle Contracts where they help you to understand the benefits of leasing. Sounds like a good idea.

You can read case studies here: http://www.nationwidevehiclecontracts.co.uk/personal_car_leasing_casestudy1.htm

Or you can get an overview of leasing here: http://www.nationwidevehiclecontracts.co.uk/how-leasing-works.htm

Main benefits of leasing:

• Can be cheaper than buying a new car
• You get a brand new car
• Change your vehicle every 2,3, or 4 years dependant on contract type
• Road tax and breakdown recovery included

hope that helps you.

Answer 2

Leasing carries financial and other advantages for some consumers. Some of the biggest pros of leasing lie in reduced maintenance, lower costs and greater flexibility. Below is more information about the benefits and downsides of leasing versus buying.

Lower Payments

Lease payments are designed differently from loan payments and are often cheaper. Charges for depreciation and financing are added to make lease payments. Loan payments for car purchases are composed of principal charges and finance charges, and the lending company keeps the legal title until the loan is repaid in full. Lease payments often end up costing less per month than loan payments.

Advantages at Trade-In

When it's time to trade in a leased vehicle, drivers enjoy a few major advantages. Consumers who lease can get a new car at the end of each term, a major benefit for drivers who love trying new cars and following trends. Having a fresh car that's in great shape is also an impressive show of affluence. Leasing also lets consumers easily buy their leased vehicle for its residual value according to contract, lease another vehicle from the same brand or try a completely different car. In some cases, drivers can buy the vehicle they leased and sell it for profit on the used car market.

Downsides of Leasing

Leasing does carry disadvantages in some situations. Consumers with poor credit may not qualify to lease a vehicle at all. Because drivers don't own the cars they lease, they are responsible for any damages when the contract is over. Vehicle customization is also more complicated because all customizations must be removed at the end of a lease, and repairs have to be made if damages have occurred due to modifications.

Vehicle leasing can be a great option for consumers with stable finances and a preference for new cars. Compared to buying and keeping a car for a decade or more, leasing also puts more money into the economy, which ultimately benefits everyone. While buying may be more convenient in some cases, leasing is a better deal for many drivers.