Five Things to Know Before Leasing a Car
If you are looking for a new or used car in Greensboro, N.C., you may be tempted to consider leasing a vehicle. Since Monarch Auto Sales does not offer leases, we can admit to more than a little bias in the buy versus lease debate.
However, we truly believe buying a car is a much better idea for almost everyone. After all, we want to do business that’s good for us and our customers (that’s one of the not-so-secret secrets of running a great business).
That’s why the Monarch Auto Sales team put together a list of five major things to consider before signing a lease:
1. You’re (Probably) No Fortune Teller
One of the biggest risks you assume when you sign a lease is that your ability to afford it may change for reasons you can’t see coming. In an economy this uncertain, running into financial difficulties that force you break the terms of your lease can be a very expensive, yet all-too-possible worst case scenario. In most cases, you will be much better off with the freedom to sell the car you are paying off (if you need to) than breaking a lease.
2. Staycations Get Old After A While
Buying your own car gives you the freedom to go where you want go, when you want (or need) to go there in the years ahead. Most lessees are forced to constantly watch the odometer to ensure they won’t be rack up heavy fees for going over their mileage allotment. Staying close to home for a vacation isn’t bad every once in a while – but never feeling like you can take longer vacations or emergency trips in your vehicle can get pretty old pretty quickly.
3. Quick Fixes For Long-Term Needs Usually Don’t End Well
Chances are that you’re going to need a vehicle for a long time. And while the financial costs for leasing may be about equal (or not – read below) to a car payment for the first few years, you will absolutely pay more – a lot more – for leasing before long. The lower monthly payments dangled in front of would-be lease customers don’t look so great when you factor in the extra fees or the money you are giving away instead of building equity in something you will own for yourself one day.
4. The Lowdown on Down Payments
Some lease agreements don’t require a down payment – but many do. That’s a lot of money you have to come up with before getting into your new ride, and it’s money you won’t ever see again. Once you’re stuck in the lease loop you have to make the painful decision every few years: come up with another down payment or take over payments on the car you have been leasing.
5. The End of the Story
Dealers that offer leases make the front end of the agreement as attractive as possible. That’s because they know that the end of the agreement is often a tough deal for the person who signs a lease. Even if all goes well, and you don’t have to pay steep mileage fines, excessive wear and tear fines, fees for modifications to the vehicle or end of lease agreement fees – you are back in the exact same spot where you started.
On the other hand, you can buy a used car that fits your needs and your budget, pay a little more each month for the first few years, but in the end own what you have been putting your hard-earned money toward all along. What’s more – you will have a lot more freedom every step of the way.
If you have questions about leasing versus buying a used car in Greensboro, N.C., give us a call at Monarch Auto Sales: 336-856-9707. Or, come by and let our honest, friendly staff give you a no-pressure look at some dependable used cars that really work for what you really need today.
