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What is Car Leasing – And Is It a Good Idea?

August 12, 2020 3:37 pm Filed to: Cars by Jerry

Introduction

Do you want to drive a car without paying a hundred thousand dollars? Are you planning to drive your favorite BMW? Nowadays, renting is a smart decision if you want to drive a specific car model but have a tight budget. We recommend leasing since it costs less than purchasing a loan for the same unit. Lessee, also known as the person leasing the vehicle, also have to pay for monthly fees, similar to car loaners. However, leases often have lower prices since you will only rent a unit for a set amount of time. 

What Is Car Leasing?

Car leasing is a form of renting in Los Angeles. It means that you will pay for the vehicle during your leasing period and bring it back to the owner after it ended. In car leasing, you will primarily pay form the vehicle’s usage, including its depreciation, interest, and monthly fee. Also, when you lease a car, you are required to pay for a down payment.

Advantages of Leasing a Car

There are several advantages to leasing a car. If you don’t know yet, it is a smart choice, especially when you will need the vehicle for a short time. There is a big difference in prices when it comes to leasing a used one and buying a new one. If your priorities and life demands require a car for a few years, leasing is more recommended.

Aside from that, you can try different models every three to four years. You don’t have to worry about where to sell your old car. Nowadays, most of us want to drive new vehicles. If you rent a vehicle exclusively, you will enjoy changing from one model to another without the hassle of selling the old one.

If you want to guarantee your protection in leasing, you may purchase GAP insurance. It would help you cover the expenditures if your leased vehicle got stolen or damaged.

In terms of value, car leasing is way cheaper than paying your monthly fees for a loan. It is ideal for people who don’t want to cash out a lot and balance their tight budgets. When it comes to down payments, most leasing companies require the first month’s full fee. However, make sure that the seller does not ask for higher down payments since you will only apply as a lessee.

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