Leasing a car is more than just a long term rental fee. There are some similarities but leasing has additional qualifications and benefits.
A car lease is an agreement for a set period. This period is usually around three years. During the time of this lease, a person will pay the lessor which is usually a bank to use the car. A person is allowed to drive the car a specific number of miles each year. The average lease allows around $12,000 miles annually. If a person goes above this mileage they will need to pay an additional fee for the depreciation of the car’s value. Taxes also need to be paid on the car.
When the lease is up a person will need to return the car and it will need to be in good shape. If there is excessive wear and tear a person will be charged for the repairs.
While leasing sounds like a hassle there are some benefits to leasing a car.
The price of the car is less expensive monthly. A lease will allow a person to drive a car for a lower payment then if they were looking to own the car. This way a person can get a new car without paying a high price.
When leasing there is usually a lower cost for maintenance. The time of the lease usually ends before major repairs are needed. All a person may need to do is get oil changes and tires. This car often comes with a factory warranty so if there is a problem it will be covered.
Leasing will allow a person to get a new car every few years. As long as they follow the terms of the lease and keep the car in good condition leasing can be a less expensive option for driving a new car.