PHOENIX, Aug. 1, 2016 /PRNewswire/ -- Individuals who are in the market for a new car are faced with the choice of buying or leasing their new vehicle. Each options comes with its own distinct set of pros and cons. When it comes to choosing the best option, individuals must assess their specific needs, circumstances, and lifestyle. For individuals unfamiliar with specifics of leasing and/or buy, making optimal decision can be difficult. Hastings and Hastings educates on the pros and cons of leasing a car.
Under the right circumstances, leasing a car can be significantly less complicated than purchasing one. The primary reason for this is that leasing a car does not necessitate taking out a loan. Rather, when leasing a car, individuals enter into a long-term rental agreement. Typically, leasing a vehicle requires a much smaller down payment than buying one. A standard down payment for a lease will often be less than 20 percent of the total value of the car. Although a large down payment is not necessary, the more money an individual pays upfront, the lower their monthly payments will be. When considering leasing deals which advertise low monthly payments, it is important to look at the size of the down payment.
At the end of a leasing agreement, the car is returned to the dealership. This means that the lease holder will be able to lease a new vehicle. If they continue leasing in perpetuity, they will have access to a new car every few years. However, this means that the lease holder will never outright own a car, so they will always have car payments to make.
Leased vehicles have a yearly mileage limit placed on them. If a lease holder exceeds this mileage limit, they will pay a penalty of $0.15 to $0.25 per mile over. Mileage limits can be imposing. Hastings & Hastings advises that it is possible to negotiate large mileage limits at the beginning of a lease, however, this will usually increase the monthly payment.
"Leasing is a great option for people who want to minimize hassle and always have access to the newest cars on the market. They should be aware though, over time leasing becomes more expensive than buying a car. Making the right decision is about balance your priorities and figuring out what fits best with your lifestyle," said David Hastings, the founder of Hastings & Hastings.
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SOURCE Hastings & Hastings