Pros & Cons on Leasing a Car

Leasing a car is an attractive option for those who can't afford or don't want the hassles that come with buying a new vehicle. As with everything, however, there are pros and cons to the transaction. While a choice may be good for some, it can carry complications for others who are not sure what they are getting into.

Effects

When you lease a vehicle, you pay only a small monthly fee and have either partial or total coverage for damages or repairs to the vehicle for the 2 to 3 years that you own it.

Solution

You don't usually need a perfect credit score to lease a car, as leasing is a much quicker and easier decision because the risks are lower for the lender.

Significance

Leased cars usually come better-equipped, a big advantage when leasing luxury cars, which may benefit from extras such as alarm upgrades, cruise control and window tinting.

Warning

The biggest disadvantage of leasing a car is that it is never yours, which may become a problem if you need to get out of your lease for any reason (fees and penalties are likely to be in the thousands of dollars).

Considerations

Leasing a car may not be a good option if you drive long distances, as most leased cars have a mileage limit (15,000 miles per year is standard), after which you will pay hefty fees per mile.