subject: Car Leasing Cons [print this page] Is it better to lease a car or purchase it? The answer depends on several factors such as your finances and if you are prepared to handle the responsibilities of either situation. There are many benefits to a car leasing for the consumer, however, there are pitfalls associated with a car leasing. Being aware of these potential headaches and knowing what to do can save you a lot of grief in the long run.
Always remember that the car-dealer is an expert at his business and you are not. When discussing terms and agreements many customers fall short and end up signing a contract that is not in their best interest. This usually happens because they do not understand the agreement due to unfamiliar terminology to them. The car-dealer often speaks using jargon that he / she do not simplify for your benefit. The customer sits there feeling inadequate and signs with the misconception that the car-dealer is looking out for his / her best interest.
Research on the internet about a car leasing to familiarize yourself with the car leasing terminology before going into the dealership.
Do not feel intimidated by the dealer when you he / she is unclear about anything. Politely ask for an explanation, admitting to the dealer that you need clarification.
Tell the dealer that you would like to think over it for a couple of days. Do not make hasty decisions because the deal sounds good. Get a second opinion from someone you trust who can objectively identify if this is a good deal for you.
Everyone loves to pimp their ride and you may find in a car leasing contract a no customization clause that does not allow you to modify, especially if modifications are permanent or can cause the car to depreciate in any way.
Another pitfall to look out for in a car leasing is a penalty for ending the contract before its maturity date. You will have to pay early termination fees in any dealership that you go to. The question is how much. Also remember that the earlier you terminate the higher the termination fees are going to be. First, decide if the car leasing is what you really want to do and stick to the agreement. Bailing out too early in the deal means that the termination fees will be hefty when you analyze the situation. What you have actually done is paying the dealership termination fees, the use of the car that you are not using!
Remember that at the end of the car leasing contract you have to return the vehicle or have the option to renew it. Either way you walk away empty-handed after paying handsomely for a car you do not own! If you are comfortable with this kind of arrangement then everything is fine. However, if you depend on having a car because of your job, your better option might be to consider buying a car. The concept of a car leasing is a good option providing that you are aware and comfortable with the risks involved.
