The Pros and Cons of Leasing a Car, Truck or Van

Leasing a car, truck or Van is an interesting option, and one that many buyers have considered. Like other methods of acquiring the transportation you need, leasing has both its good points and its bad points. It is important to understand the pros and cons of leasing a vehicle before signing on the bottom line, and it pays to do plenty of research before making this important decision.

Let’s start with a look at some of the most significant advantages of leasing your next car, truck or Van:

> Leasing generally equates to lower monthly payments. Since a lease program typically requires paying only a portion of the vehicle cost, the monthly payments can be quite a bit lower than the payments on a straight purchase deal.

> Leasing a car, truck or Van also allows car shoppers to drive newer cars, and to swap them out more often than they may otherwise be able to afford. If you are the type of driver who simply must have a new car every three years, leasing may be the perfect solution for you.

> Those who lease their vehicles can also enjoy fewer maintenance issues than those who buy. Matching the terms of the lease to the terms of the manufacturer’s warranty can help eliminate the risk of costly repair bills as well.

> Leasing can also result in a reduced need for cash when taking possession of the car. When purchasing a car, a significant amount of cash is often required – to pay taxes, make the first payment and cover other costs. With a lease, little cash is generally required when the car is picked up.

Of course there are disadvantages to leasing a vehicle as well, and it is important for all car, Truck or Van shoppers to be aware of these possible pitfalls as well. There are significant risks associated with leasing a vehicle, and those risks should not be overlooked.

Some of the most significant disadvantages of leasing your next car, truck or Van include:

> Those who lease their vehicles may be subject to stringent mileage limitations, and significant charges for exceeding those limitations. Some leases limit drivers to a mere 12,000 miles per year, an easy figure to exceed. The charges for going over these modest limits can be quite significant, so it pays to read the fine print.

> Lease holders may also be subject to excessive charges for damage to the vehicle, including what the dealership feels is excessive wear and tear on the vehicle. Again, it is important to read the fine print, and to carefully document any damage that occurs to the vehicle while it is under lease.

> Perhaps the most significant downside of leasing a vehicle is that you will not own it at the end of the lease. In order to keep driving the vehicle after the lease is up, you will need to purchase the vehicle from the dealer. In many cases this purchase will require a significant outlay of cash, often amounting to a significant portion of the original cash purchase price of the vehicle. It is important to consider this disadvantage carefully in order to determine if leasing is really the right solution to your transportation needs.