Getting A New Car or Truck? Thinking About Leasing?

Are you getting a new car or truck? Can’t decide whether to lease or buy? Well when deciding whether or not to lease a car, it is important to consider several factors. Consider this leasing 101.

When you are leasing a car or truck, the monthly payments are generally lower than the monthly finance payments because you are paying for the car or trucks depreciation during the term of the lease, plus rent charges, taxes and other fees. Remember though, after paying for all that you must then return the car at the end of the lease unless your lease permits you to buy the car or truck.

There are different lease offers and terms, including mileage limits and how long you want to keep the car  or truck before you decide on a lease, make a firm decision on these before you go to the dealership. Most leases only permit you to put 12,000-15,000 miles per year on the vehicle. Well if you commute quite a distance to work or you like to travel you’re going to put lots of miles on that car and the typical charge is 20 cents per mile you go over. That can sneak up on you if you’re not careful.

When you lease a car or truck, you are basically purchasing the right to use that car for a predetermined amount of time and miles. At the end of the lease you may return the car or truck and pay certain fees and charges or you can buy the car or truck for an additional “already agreed-upon” price. You should be careful not to sign a lease for more time than you truly want to keep the car or truck as can be very heavy early termination charges if you end the lease early. Don’t forget that you are ultimately responsible for excessive wear and damage to the car or truck. You are also responsible for bringing the car or truck in for service in compliance with the manufacturer’s recommendations. You will also have to have insurance that meets the leasing company’s standards.

I know people that love leasing vehicles and swear by it. I also know people that don’t care for it at all. Ultimately the decision is yours. What will it be? Buying or Leasing??? Hmmm.

Thanks to Brandi Hodge for contributing.

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