The Advantages and Disadvantages of Leasing
To lease or not to lease? It’s a questions that all car buyers must ask themselves, but many struggle to answer. There is a lot of conflicting information, and what is a good option for one driver may not be for another. To help you make the best possible purchasing decision, the team here at Earl Stewart Toyota has highlighted the advantages and disadvantages of leasing.
Advantages of Leasing
- If you are involved in a collision and the value of your car is reduced, it will not hurt you financially when you return the car.
- At the end of your lease agreement, you can buy the car outright or upgrade to something different, giving you more flexibility than buying from the start.
- Dealers and automakers will encourage you to extend your lease by offering generous perks towards the end of a lease agreement like waived payments and fees as well as special terms for a lease extension.
Disadvantages of Leasing
- You never own the car and have to follow terms and conditions defined by the dealer and the automaker. These can include mileage limits and mandates to keep the interior at a certain quality. If you break these terms, you could face stiff fines and penalties totaling thousands of dollars.
- Lease agreements are far more complicated than purchasing agreements and contain a lot of confusing fine print. Many drivers misunderstand that they are obligated to pay for the duration of a lease agreement even if they decide they don’t like the car.
- There are often hidden fees built into lease agreements that are difficult to pick up on with the untrained eye. These could include “acquisition fees” and “disposal and disposition fees.”
Should You Sign a Lease?
That is entirely up to you. What is key, however, is reading your lease agreement carefully and thoroughly researching any vehicle before making the decision to buy or lease. Get the in-depth information about the car-buying process, in-house car financing dealers, and straightforward service you’re looking for by working with the team at Earl Stewart Toyota in Lake Park.