Pros and Cons of Leasing a Vehicle

Should you buy or lease a vehicle? This is a decision which ultimately depends on your personal lifestyle and your preferences when it comes to vehicles.  In general, leasing allows you to drive a better-equipped vehicle for less money, and you also have the option to drive a brand-new car every two to three years. However, there can be a few disadvantages that come with leasing that can make buying a more appealing option.

Listed below is a basic list of the Pros and Cons of leasing a vehicle to help you make a better decision on whether to lease or purchase.

PROS

• Usually there is little to no down payment required when leasing.
• Leasing enables you to potentially drive a higher-priced and better-equipped vehicle than you may otherwise be able to purchase.
• Monthly payments are typically lower when leasing compared to buying.
• Lower maintenance costs (With a three-year lease, most repairs are covered by the factory warranty.)
• You can more easily drive a new car every two or three years.
• At the end of the lease there are no trade-in hassles.
• You pay sales tax only on the portion of the car you finance.
• Leasing gives you the ability to “test-drive” a vehicle for an extended period of time if you are already thinking about purchasing a particular type.

CONS

• At the end of the lease, you don’t own the car.
• You aren’t allowed to make any permanent changes to the vehicle.
• Your mileage is limited to a set amount, typically 12,000-15,000 miles a year (any miles over the limit are paid for at the end of the lease).
• In the long run, leasing may be more expensive than buying.
• Wear-and-tear charges can add up, unless you regularly clean and maintain the vehicle (paid at lease termination).
• If you decide to terminate the lease early, you may be charged some fees and penalties.

Ultimately, the final decision of leasing or buying a vehicle comes down to what fits your needs and desires most. Ask your salesperson to discuss the benefits and drawbacks of leasing for your particular driving needs. At Thelen, we are here to help you make the best and most cost-effective decision to fit your lifestyle!

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