Financially speaking, there are good reasons to lease a car and good reasons not to. If you are someone who does not care much about cars, like my sister who drives a 123,000-mile beater that is missing a side mirror and in desperate need of an oil change, leasing is probably not for you. Keep driving that Datsun. But if you really love nice cars like my other sister, who is overly protective of her sleek red Acura but knows she’ll want something different in two or three years, leasing might be a good option. Here are your pros and cons for leasing a car:
Reasons to Lease a Car
- If you are financially stable, you will have no problem leasing a car that you might not be able to afford to buy. You will need a good credit score and a sizeable deposit.
- The term of the lease is often around three years. So, you essentially pay for the car while you drive it. This makes sense if do not want a long term commitment. When the lease is over, you can give the car back. Or, if you really loved the car, you will have an option to buy it. Leasing gives you flexibility.
- Leasing works if you do not drive long distances. There are restrictions put on the number of miles you can drive in your leased car, without having to pay a penalty. So, lease if you have a short commute to work, and your weekends are spent in around town.
Reasons not to Lease a Car
- You drive a lot of miles. If your commute is long or you spend your weekends taking road trips, do not bother leasing a car. You will have to pay a lot of money when you go over your allocated miles.
- You beat the crap out of your cars. Three kids crammed in the back seat with sticky fingers and cups full of crackers and cereal? A terrible tendency to back into the mailbox or sideswipe the garage? Buy something inexpensive instead. You will need to return your leased car in a condition similar to the way you picked it up.