Is Leasing Right For You?

When it comes to deciding whether to lease or buy a car, there are a number of factors that must be taken into consideration. Essentially, in a lease, you never "own" the car. You make payments for 2-3 years and, then return the car. Let’s look at some of the advantages and disadvantages of leasing a car.

If you are a person who routinely switches Automobile Accident Lawyer Milwaukee every two to three years, it might be right for you to lease. A lease is similar to a long term rental, with a contract for a fixed amount of time. The contract will establish your monthly payment and the term of the lease. At the end of the term, your car has a residual value. That value is established by the leasing company based on factors such as mileage, seasonality, and disposal performance. You are then given the option to buy the car at the end of the lease for the residual value. If you are in love with the car, or it is worth well above the residual value, you may want to consider it. However, in most cases, you simply hand over the keys and walk away.

Leasing typically allows a person to get a nicer car for the same amount as purchasing a lower-end car through a loan. You are only "financing" the difference between sales price and the residual value. In a loan, you are financing the entire purchase price.

Lastly, in a lease you pay less sales tax. For example, in a conventional purchase on a $25k car, you pay tax on the entire purchase price. In a lease, you solely pay sales tax on your monthly payment. In other words, if your payment is $300/month then your only taxed based on that monthly payment.

In summary, lower out of pocket expenses, lower monthly payments, and the option to purchase the car at lease end are some of the major advantages to leasing. Furthermore, the purchaser gets the satisfaction of a car that is almost always under warranty, and a new car every two to three years. However, there are several drawbacks to leasing a car.

One potential drawback is the amount of miles you drive on average. In a lease, there is a specified amount of acceptable mileage. Most Automobile Personal Injury Milwaukee leases are constructed around twelve thousand or fifteen thousand miles per year. If you go over the mileage, there will be a per-mile penalty at the end of the lease.

You are not able to just lease any car, as they are limited to what the dealership offers. There are also several turn in fees and your insurance will be higher because leases have a higher minimum insurance requirement then most people typically insure their cars for. Lastly, and one of the biggest disadvantages, is that after two or three years you walk away car-less and with no equity.

There are many potential reasons and factors for leasing but one must balance the positives and negatives to come to a sensible conclusion. Hopefully, we have been able to assist you in making this important decision.

If you or a loved one has suffered an injury due to the negligence or fault of another person, call Gruber Law Offices, LLC today for your free consultation. There is no fee unless we win and we can meet you at a place that is convenient for you such as your place of work, hospital, home, or our conveniently located downtown Milwaukee office.

Speak with one of our lawyers right now by calling 414-276-6666 for a free initial consultation. “ONE CALL… THAT’S ALL!”