Car leasing plans can save you money when you order your next car, however they may not suit everybody, as I explain in this article.
What is car leasing?
Brooklyn Car Leasing, NY plans are very similar to rental schemes. You pay an initial nonrefundable payment followed by monthly lease amounts during the term of the lease. You don’t own the car, as you are merely renting it, and you hand it back to the leasing company at the end of the lease.
Possible disadvantages to leasing a car
There are a number of disadvantages to leasing a car, rather than buying it outright or arranging other forms of finance.
- Bad credit history A car leasing company needs to be confident that you are credit worthy and will meet all the monthly payments throughout the lease. They will run a credit check to assess your credit worthiness. If your credit report shows that you have had credit problems in the past, then it is unlikely that the leasing company will approve your lease application. In that case, you will have to finance your car purchase through other means – possibly with a company that specializes in financing people with poor credit histories.
- High mileage users leasing companies will offer quotes based on expected annual mileages. As depreciation of a car is based, in part, on its mileage, the more miles you do in it, the greater its depreciation and hence the more a leasing company will charge you. Although you might has estimated that you will only use the car for a certain number of miles during the lease, if your actual mileage is higher than expected, you will be subject to an additional cost when you hand the car back – often 10p per mile.
- Children and dogs The condition of the car at the end of the lease also determines its value so if you return the car in a poor condition, you can expect the leasing company to charge you extra, as you have devalued the car more than expected. Families with young children, or dogs, may not be suited to car leasing schemes as they can cause more than “fair wear and tear” damage to the leased car.
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Optional extras If you like to personalize your car with a number of optional extras, such as larger wheels, upgraded sound systems or satellite navigation, then leasing a car can present problems. This is because the leasing company will charge you the full cost of the optional items, but then divide this by the number of months of the lease term. So you pay for the options in full, but have to hand them back, as they are part of the car, at the end of the New York Auto Leasing Company. This makes optional extras an expensive luxury when leasing a car.
Driving towards a USA car leasing revolution
The USA car market has been slower to act but finally it seems that the benefits are getting through and it looks like we are on the brink of an explosion in demand for leased cars. The growth potential is huge – latest estimates reveal that only around one percent of cars are covered by leasing deals in England, Wales, Scotland and Northern Ireland.
As scores of new car leasing/contract hire companies emerge and compete to gain early market share and establish their customer base, the USA public is being presented with an incredible opportunity to drive a great car for a really superb price.
Car leasing: take the road less traveled
The appeal of car leasing is down largely to the fact that through leasing it is possible to get behind the wheel of your dream car without paying out a fortune.
If you love cars but your aspirations are bigger than your budget, it could make perfect sense to take the less conventional route of leasing. With traditional purchasing, you need a large lump sum and as soon as you buy a new car the dreaded depreciation begins. Within a few years the vehicle’s value has plunged, which can make selling it on a real pain. As a result, drivers often stick with the same car for many years, despite longing for an exciting new drive to rev up their life.
With a leased car, depreciation is the contract hire company’s problem – and you can relax behind the wheel with a stress-free, low maintenance experience. There are many additional benefits to car leasing, which are all contributing to building the early market. Here is a round-up of the key reasons why leasing is often better than buying:
- Drive down the payments: The monthly payments with car leasing are usually much lower than with typical car purchase loans
- Stay in the fast lane: Keep up with the latest trends in car design and manufacture by moving to new models much more often
- Appreciation, not depreciation: Cars can often be leased for less than the cost of the depreciation to a new car, so you can enjoy the fact that you don’t own a declining asset
- Throw away disposal costs: At the end of the lease, you just hand the car back, and don’t have to worry about cost and hassle of selling or scrapping
- Take control of your money: With leased cars, no large lump sum cash payments are required so your money is not tied-up in one purchase
- Be free and easy: There is no need to negotiate with mechanics over repairs, deal with maintenance bills or road tax, as these should be the responsibility of the contract hire company.