So what is the biggest disadvantage of leasing a car (or any other vehicle for that matter)? The main disadvantage of car leasing is that you are held to a car lease contract, which can be costly if you wish to break your lease. Y ou're putting money into a car that you won't own. However, there are options available for you to break your lease, or transfer your lease(define: auto lease transfer). We’ll provide more detail on how to transfer your car lease later in this guide.
Really, the only major disadvantage to leasing a car is that in the long run, you the consumer will spend more money than through financing or by paying cash for the vehicle. But this is a decision you should make before you even consider leasing. If you’re only in for the short to medium term, then yes, leasing a car can be a great option, and you may have the option to transfer your car lease to another consumer - who would then take over the reaminder of your lease - considered a short-term car lease. But if you plan to later purchase the vehicle 100% out-right, then yes, you will end up spending more for the car than if you purchased it.
While what I’ve outlined above is really the only major disadvantage to leasing, there are a few minor tips you should be aware.
When you’re seeking to lease a new vehicle, many car buying books mention one of the first strategies to negotiating with the dealer is not to tell them you wish to lease the vehicle until you negotiated a reasonable purchase price (define: purchase price). This strategy will prevent the salesman from any lease terms to hide the true sales price of the car. If a dealer knows that you're not going to buy from them they may get all they can on the wear and tear charges within the lease. So spend your time learning of the lease rates (define: lease rates) to determine if they’re reasonable, or whether or not you can afford the payments.
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