| There are pros and cons to both leasing and buying a | | | | 4) You never have to think about the trade-in value |
| new car and it pretty much comes down to your | | | | of your car or what you could get for it because |
| own personal preference and what your long-term | | | | that is already figured in to the lease price when you |
| plans are for the vehicle. | | | | first sign the contract. There are no surprises with a |
| If you are running a business and use the car for | | | | lease everything is spelled out for you right up front |
| business it may be best for you to lease so you can | | | | so you know what to expect and can budget |
| deduct the lease payments from your taxes. | | | | accordingly. |
| The best advantages of a lease over a purchase are: | | | | There are a few disadvantages to leasing: |
| 1) You only pay for the part of the cars life that you | | | | 1) You have to be careful how you treat the car. |
| have used so your payments are lower than they | | | | You cannot leave it somewhere where it will get |
| would be had you purchased the vehicle. Since you | | | | damaged even just a scratch or you will have to pay |
| are only paying for part of the cars value you are | | | | for the damage to the dealer when you return the |
| able to possibly buy a more expensive car for the | | | | car at the end of your lease term. |
| same price that it would have cost you to buy a less | | | | 2) The mileage will have to be monitored too. Usually |
| expensive one. If you are in business and you take | | | | when you sign a lease you pay for a certain number |
| clients out in your car it would be better for their | | | | of miles in advance when they calculate your lease |
| first impression of you to be taken out in a nice car. | | | | payment if you go over that amount you usually |
| 2) The warranty of a leased car will never run out as | | | | have to pay a penalty in addition to paying for the |
| long as you own it so you will never have to worry | | | | extra miles. So make sure you over estimate the |
| about paying for major repairs. They will be taken | | | | number of miles you plan on driving the car when |
| care of by the dealer. You will have to keep up with | | | | you first sign the lease. The cost per mile is much |
| routine maintenance as it is spelled out in your | | | | cheaper when you first sign the contract than when |
| contract but you would have to do that even if you | | | | you bring the car back. |
| bought the car to keep the warranty in force. | | | | 3) Sometimes car insurance companies charge more |
| 3) As a lease owner your car is always new. You will | | | | to insure a leased vehicle than they do a purchased |
| always have the newest features available and never | | | | one. So be sure to give yourself plenty of time to |
| have to worry about your car becoming obsolete. As | | | | shop for the best insurance rates before you set |
| a business owner you wouldn't want to take a client | | | | foot on the dealers lot to look for a new car. |
| out in an old rattle trap and expect them to really | | | | In my home-based business I use the car quite often |
| want to do business with you. It is always best to | | | | to go and visit prospective clients and the ease at |
| take clients out in a nice car so it doesn't become | | | | tax time with the lease payments has made it worth |
| the focus of your meeting your actual reason for the | | | | it for me. Plus I get to drive to my clients meeting in |
| meeting will stay in the forefront of the conversation | | | | a brand new car which really looks good and gives |
| and not the car. | | | | my business credibility. |