Leasing of car: advantages and disadvantages
More and more people prefer to lease cars today instead of directly invest in the purchase. You might also be planning to do so. In this case it is important to know what you are about to engage in. The paragraphs below will help know the advantages and disadvantages of the leasing of car.
Advantages of the leasing of car
The greatest advantage of the leasing is probably the method of financing used. There is a difference between that and the other car loans. Actually, with the leasing you have the opportunity to use a car without being oblige to buy it. It is very helpful when you do not want to invest in the purchase of a car.
Another advantage is the possibility to choose the type of contract you want. When your contract comes to an end, you can return the car, buy it or sell it to another person. Moreover, it is not compulsory to make a security deposit if you cannot afford that. You also have the opportunity to change your car to get another more fashionable one.
You should know that there are some types of contract that give you extra advantages. Those contracts encompass the maintaining and insurance of your car. You are also given the opportunity to apply for a new contract when the current one expires.
Disadvantages of the leasing of car
Although the leasing has numerous advantages, it also has few disadvantages. For example, you are not allowed to make any modifications to the car. As the leasing is based on mileage, you will have to pay compensation if you exceed the fixed mileage. Also, in case of theft, loss or major incident, you should keep paying the rent. And this till the end of the period defined in the contract.
It appears clear that the leasing of car is very profitable. However, it also has some constraints. Knowing its both advantages and disadvantages will help you take clear decisions.