In a nutshell, car leasing means paying to drive a car and not to own it. Some people find the word “renting” more appropriate but it is all the same, you don’t get the car when the agreement ends. Some agreements do provide the option of buying the car at the end of the term but you have to pay the full market value at the time while ignoring the fact that you drove and paid for the same vehicle for a length of time. All it means is that you will drive a nice and shiny car but you will never own it.
Recently, car leasing has gathered pace. In this type of auto financing, you are allowed to rent a car from a dealership for a certain period of time say 3 years and for a certain amount of miles like 50k miles. You pay the monthly lease payments and in exchange the dealership allows you to drive it. This auto leasing firm in Brooklyn can help you find a deal that suits your needs.
Some people may find car leasing a better option for most it is not so. To lease a car, you are required to have a good credit score of around 700. Sometimes, you need a better credit rating for leasing a car than for getting a loan. So it is considerably hard to lease a car if your credit rating doesn’t meet the criteria. In addition, most banks don’t readily provide credit for leasing which forces the average customer to get financing on few available lenders’ terms.
For the same car, leasing is cheaper than buying. This means car lease is easy in Brooklyn now. As you have to pay less monthly payment if you lease in contrast to buying. This gives you the opportunity to own a nice vehicle but you don’t exactly own it. For those, who want to drive the latest models, leasing can be a better option as it allows to upgrade the cars at the end of the lease. This can save them from a whole lot of trouble of selling the old car before buying a new one.
As said earlier, car leases often come with caps on the miles driven. Which means you have to watch how much you drive. Mileage restrictions are common to almost all lease contracts. You would have to control your traveling fervor on a leased car. So, if you are a frequent traveler either for business or pleasure, buying may be a better option for you.
Just like many other things, cars get old too. And when you are driving an old car, problems become frequent. As leasing allows you to upgrade your cars after a short period, you get a new car while your old car is still considerably new. By doing so, you can avoid getting caught in an old car. Moreover, some leases include maintenance of cars too and you have to pay for fuel only.
We can admit that the arguments in favor of leasing are very heavy but the point still stands that you never own it. Buying a car gives it under your outright ownership. Financing one comes under your ownership once the loan is paid off. But the leased car is always owned by the leasing company and you just rent it. In the end, it all falls on personal preferences.