:::♥::Alice in Wonderland:::♥::: asked:
In other words, why do people lease cars, and what are the potential draw backs of doing so ?
In other words, why do people lease cars, and what are the potential draw backs of doing so ?
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What are the pros and cons of leasing a car?2 comments to What are the pros and cons of leasing a car? |
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The lease rate for the car is based on interest rates and the expected value of the car at the end of the lease which depends on the miles used. Most leases punish you at the end if you lower the final value by driving more miles or if the car is okay on miles but in poorer condition than they expected (more than 3 years of wear, whatever.)
A lot of dealership and car companies are taking a bath right now because the value they expected to get for the popular SUV’s they leased has dropped like a rock. They might build a penalty into the lease in anticipation of that. And you don’t want to buy the car because your lease says you can buy it for the balance, say $15,000 and it is now worth $9.000.
You don’t own the car, but you have liabilities for the lease if it is stolen or badly damaged and while the same is true for a loan it may be harder to get insurance, or you have to be more careful.
In my opinion, i dont see the point in leasing a car. You have a set amount of miles you can drive the car, meaning it costs you money if you drive the car more than they specify. Also, you dont own your car. From my understanding, its kinda like renting it, but your told how much you can drive it.