Looking into Leasing a Car: 5 Things to Know

Leasing a car has been a more popular way to go recently. Leasing allows you to have a nice car without the hassle of buying a car. With a lease, you don’t have to worry as much about repairs because most things will be covered with a warranty. Your payments will certainly be lower than buying the same car, and at the end of your term, you can simply walk away from the car and lease or buy a different one.

However, before you decide on a lease, there are some things you want to know:
-With a lease, there will be a mileage cap per year or for the length of the lease. Know what this is because if you go over the miles, you will be charged what can amount to a lot in fees.

-You may or may not have a down payment. That is something to look into and be aware of.

-Maintenance costs and warranty is another thing to know about. Your lease vehicle will probably be under warranty, but it is important for you know what is covered by that and what is not. As for routine maintenance like oil changes and tire rotations that is something you will have to pay for.

-You may want to purchase gap insurance to cover the difference between what you owe on the car and what you’ve paid. Gap insurance will be beneficial because it will protect you if something happens to your car and you owed more than it was worth.

-Leasing affects your credit score. This is important to know because your payment history will contribute to improving or hurting your credit score. In fact, leasing may be a good option to improve your credit. If you don’t think your credit score is high enough to buy, you could lease.

The most important thing to do before you lease a car is to read the fine print. Know what you are getting yourself into before you take the next step.

Ultimately, you may decide leasing is for you. Or you might want to get an auto loan and finance your car. If you are struggling to make the decision, you can always consult us. Let us know what we can do to help you out!