Leasing is quickly becoming a popular way for motorists to get a new vehicle. If you are reading this guide, it is quite likely that you know and understand that leasing a vehicle is different than renting or buying one. Essentially, this is a special type of arrangement where you pay a designated leasing company for the right to drive the car for a specified amount of time. The payments that you provide to the company do not aid in the accumulation of equity in the vehicle.
The payment is simply a means of getting approval to drive the vehicle. At the beginning of your lease, you are likely to incur numerous fees. These include title fees, security fees, and acquisition fees. Ultimately, leasing is a waste of money. There are several reasons why buying is better than leasing. In this brief guide, you will learn about 5 of those reasons.
Reason #1: Time and Distance Limitations
Many mistakenly believe that the only time limit on a leased vehicle is the duration of the lease; however, there are other limitations – particularly in the way of distance. Today, common lease agreements will limit the amount of miles that may be put on a leased vehicle. For example, if you lease a vehicle for 3 years, you will likely be informed that it may only be driven 36,000 miles.
If you exceed the mileage limitation, you will be charged a penalty for each mile in excess of what you originally agreed to in the beginning of the lease. If you want to avoid having to budget how many miles you put on your vehicle, you should buy your car instead of leasing.
Reason #2: Repair Responsibility
The second reason why it is better to buy a car instead of leasing a car is that you are still responsible for the repairs of the vehicle – even though you are not, technically, the owner. While we are on the topic of repairs, it is important to note that, when a car is leased, you are not permitted to modify that vehicle – in any way, whatsoever. If you buy a vehicle, you may opt to not repair that little scratch or you may choose to add a pinstripe; however, if you lease, you are responsible for repairing that little scratch and may not add a pinstripe.
Reason #3: High Insurance Rates
It is a known fact that the monthly payments on a leased car are typically cheaper than the payments on a car that is being purchased; however, the insurance rates on a leased car are much higher than the insurance rates on a vehicle that you are buying. This is a major drawback of leasing.
Reason #4: The Red Tape
There is a tremendous amount of red tape and fine print when it comes to leasing a vehicle. In fact, this has proven to be a hassle to many throughout the years. Examples of the fine print and red tape issues that may arise include being responsible for anything beyond what is identified as “normal” wear and tear, having to carry special insurance coverage and amounts, the inability to modify the vehicle, and mileage limitations.
Reason #5: Wasted Money
The fifth and final reason that buying a car is better than leasing is because, when you lease, you are simply wasting your money. When you buy a car, you are making an investment. You will have an asset. Once the vehicle is paid off, it is yours. Each car payment puts equity into your vehicle. When you lease, you are not making a prudent investment. You will not have an asset. You will never own the vehicle. You are out of all of that money.
Now that you know that leasing is not a prudent or viable option, it is time to buy a car. Carfect is a used car dealership that specializes in ensuring that you get the vehicle that you want and you need. In addition to having a vast selection of vehicles to choose from, all of those vehicles undergo a comprehensive inspection.
Furthermore, Carfect offers in-house financing. This means that you may get auto financing with ease! We specialize in in-house financing, which allows us the ability to be flexible in approving consumers. If you are ready to spend your tomorrows driving your very own vehicle, come see us today!