Leasing a car certainly has its advantages, especially for those who enjoy driving the latest models with the newest features. In addition to the aforementioned lower payments on average, leases also tend to include warranties that cover maintenance and repairs — further reducing expenses for the driver. This can be a major benefit for people who prefer to avoid unexpected or out-of-pocket costs.
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Another major advantage of leasing is that it allows for easy upgrades. At the end of your lease term, you can simply return the car and choose a new model without the hassle of selling or trading in your current vehicle. This is particularly appealing for those who enjoy driving new cars every few years, or those who need different types of vehicles as their needs change over time.
However, leasing does come with several drawbacks. There are mileage restrictions — typically 12,000 to 15,000 miles per year — and exceeding these limits can result in hefty fees. Additionally, you don’t build equity in the car (unless you plan to buy it out at a discount, which is sometimes an option). If you plan on keeping a car long-term, leasing may not be the most cost-effective choice. Another disadvantage of leasing is the commitment. Unlike financing, where you have the option to sell or trade in your vehicle whenever you choose, it’s more difficult to get out of a car lease early, and you may need to pay termination fees.
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Leasing Vs Financing A Car: Key Differences & Decision Factors
