Buying Versus Leasing - What Is Right For You

Many people get into their first auto lease because the monthly payment is lower, only to find out after the lease has expired (or even before) that while the lease may have been cheaper at the beginning it ended up being more expensive.

For most people, leases can be counter-productive in the long run. This is usually because of two factors, the down payment required for most leases and the possible penalties at the end of the lease period which you may have to pay, and which can be very substantial.

That is why for most people buying a new car and keeping it until it is paid off or, even better, for several years after makes much more sense in the long run.

There are two areas that people get into trouble with most often in the lease - the first is what is called 'Excessive wear and tear'. This could include external damage (dents and scratches, etc.) or internal tears or other blemishes on the seats, carpets, dash, etc.

The second and larger concern is usually the mileage allowed on the vehicle. Most leases last 2 - 3 years and there are now many leases offered called 'low mileage' leases. Most leases limit the mileage to 10 - 15 thousand miles a year, which is not that many miles.

It is very easy to go over these limits, and the over mileage penalties can be very high.

Perhaps one of the biggest things is that after your lease - you will still have to lease or buy another car. With car ownership, at a certain point your car is going to be worth more than your remaining loan balance, and after 4 - 5 years (most of the time), if you have a modern, well made vehicle, you will get to full ownership.

Unlike a lease, this means you can drive for the rest of the life of the car without making any payments.

But there are situations where a lease could be advantageous and less expensive. If you can predict a consistent low mileage, and if circumstances are simply not right for ownership at the current time, a lease may make sense.

Businesses will often benefit from lease packages more than individuals, but the added cost of the lease in ancillary expenses must be compared against the savings of the lease. And of course, the same penalty structures apply to business leases as well as individual leases.

But businesses can benefit from the fact that lease vehicles are basically brand new cars of good quality. Because of deductible costs, and the elimination of the necessity of maintaining a fleet of owned vehicles leases can be very convenient and cost effective for a business who wants their vehicles to be the best, and no more than a certain age.

Consider the lease carefully, and make sure you know all the fees and potential costs at the end of the lease period, and then consider whether owning a car would be more worthwhile. To find out more about owning or leasing a new car, contact a Kia Dealership Concord, Manchester NH drivers rely one.

For a Kia Dealership Concord, Manchester NH residents rely on, and for a world class and dependable car, go to Team Kia!