The Advantages and Limitations of Auto Leasing

Auto leasing is nothing but renting an automobile. Many people are not able to own their own cars, since they are much too expensive. So, leasing is the best possible way to drive an auto, car, or anything conveniently within their budget. This article explores the pros and cons of leasing an automobile.

The Cost Factor

Auto leasing, of course is a free service. Direct auto leasing companies are there which provide higher end models for leasing. It is a simple procedure, you just need to fill up a form, and the representative of the companies will contact you about your quote. These companies lease the already used cars too. You have to sign the contract and make the required payments. Reputed auto leasing company's representative will explain the details to you while their office staff will process the papers quickly.

The Duration

Auto leasing may be for specific amount of time, may be four, five, or six years according to the customer's choice. Even when you lease a car, you can avail a car loan, although it is tax deductible. You have to pay only the cost of leasing the car you are going to use plus interest. There are some pros and cons of leasing which have to be considered before we go for Auto leasing.

The advantages of Auto leasing are:

  • Comparing to renting, this will have lower Easy Monthly Installments (EMI). You can even drive a better car every month by spending a little amount of money.
  • The sales tax is paid from the portion of the car that you finance. The auto leasing company extends you a warranty while you lease a car. If you lease a car for three or four years, most of the repairs are covered by the factory itself. So, you are likely to spend a little amount for repairs and maintenance.
  • Auto leasing does not involve any trade-in at the end of every lease you undergo.
  • No tax problem will arise, since they are possible taxes are inbuilt in the lease amount. In this way, you can save your money a lot.

The limitations in auto leasing.

  • While leasing an automobile, you may be obliged to use a limited mileage; sometimes as little as 20,000 kilometers per year.
  • After the lease period, obviously, you are not the owner of that car. In some auto leasing agencies, the procedures and follow ups may be confusing. The contracts vary for each and every lease.
  • When you going for a long term leasing, it will much more expensive. It is not that much easy to terminate a lease in between the lease period. If you decide to cancel your auto lease before the end of the lease period, it will be costlier.

The Conclusion

Auto leasing provides a comfortable economic sensibility. A middle class family that is not yet ready for an automobile of its own can still afford to own a car temporarily. Families that are expecting to move after a brief period from a particular place can go for auto leasing. Reputation, reviews and feedbacks should be taken into consideration, while selecting an auto leasing company.

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