When you are ready to purchase your first car, you may be wondering if you should buy a new or used car or to lease a car. This is an important decision to make. You need to understand the terms and conditions surrounding your lease or your purchase. Generally, it is not a good idea to lease a car. In fact, it is best to buy a used car. A car depreciates in value the most rapidly in the first three years, and so it is best to purchase a car that is about three years old. You may be considering leasing a car because you want something new or because the payments are lower than purchasing a new car would be.
Learn more about how leasing a car works.
How Does a Car Lease Work?
Generally when you lease a car, you will need to make a down payment on the lease, a good page here will explain everything to you. This is like paying a portion of the lease in advance. Then you will make monthly payments for the length of the lease. Usually these payments are lower than they would be if you were purchasing the car. The lease will have requirements that you need to meet in order to avoid additional charge at the end of your lease. Once of these is mileage charge. In the lease it will specify the number of miles that you can go during the lease.
If you go over, you will be assessed an additional fee. Bumps and dings to the car may also have you paying additional fees or to get the damage repaired. You will also need to keep up the regular maintenance on the car. At the end of the lease, you will have the option to purchase the car and buy out the lease or turn it in.
Be sure to check the terms of the lease including buy back options and mileage
Get everything in writing including maintenance requirements
What Are the Benefits of Leasing a Car?
If you are planning on leasing your cars continually, you will need to plan to cover the down payment every three years, which means you need to save money in addition to your monthly lease payment. Bridge Consolidation Services can help.