Car Buying Online

Many people still get a little confused between whether they should lease a car rather than buy a car. Those who prefer to lease a vehicle always push the main advantages which are that you need less money up front, your monthly payments are usually lower than a purchase and there is some protection when it comes to the depreciation of the vehicle. These are all good arguments but it doesn’t necessarily mean that leasing a car is right for you.

If you’re wandering why car dealers can lease you a car for less than what they can sell you a car for, well you can guarantee they don’t lose any sleep or money on car leases. The advantages for the auto manufacturers are that they move a huge number of cars with large discounts without really reducing the selling price and offer the consumer factory subsidized residuals and much lower monthly payments. If you decide that pursuing a car lease is right for you then these factory subsidized leases are exactly what you are looking for, don’t consider any other type of lease.

If you’re trying to decide if a lease is right for you, there are some key points you should realize before signing on the dotted line. In most cases a car lease will benefit someone who can take advantage of the taxable benefits that are associated with a lease. If you have a company and feel you have to own a late model car to maintain an image or you are dependant on the vehicle for service then you want to lease a car in order to trade in your car every 2-3 years and maintain your image or dependable service commitments. This is when a lease is definitely the way to go.

If you’re an individual who just likes the deal on the table of no money down, low dealer financing and a manageable monthly payment then make sure that you can manage your mileage. Many people will go into a lease and drive the wheels of the car because they know they’ll be out of the lease in 2-3 years. Sounds great, but all leases will have a limit on the mileage you can drive before they charge you for each and every extra mile or kilometer you drive over the documented limit. You’ll see the small print say 29 cents for every mile over 10,000. It doesn’t seem like much until you add it up, the cents turn into big bucks real quick.

Most dealers will have different mileage limits and most will have extended mileage options that will cost you more if you opt for them. And if you do go with a lease and half way through you know that you’re going to blow your mileage out of the water, getting out of the lease has big monetary penalties associated with it as well.

Also, if you are in the market for a car and are a little short of cash, it’s extremely important to realize that a car dealer uses their lease deals to try and sell affordability. The problem is you get sucked into a lease because the price looks right but the result will be an inevitable financial disaster. If you find yourself in this situation, then look at buying a decent used car with an extended warranty instead and you’ll be much better off.

As always, we recommend that whether you decide to lease a car or buy a car get more than one quote for financing and try to avoid trading your car in towards the lease, you’ll never get the real value of your car. Try and sell it privately and you’ll probably end up with more for your down payment and a better deal overall.