Choosing Between Auto Finance Leasing and Buying Part III

It can be quite perplexing to choose between auto finance leasing and buying. There are many advisers who prefer leasing over buying while there are many who prefer otherwise. The best an applicant can do is to know the advantages and disadvantages of both the choices and then make the choice which suits them the best. The pros versus cons of choosing auto finance leasing are mentioned in the following lines.

Leasing is best for individuals who wish to change their automobile after every two years. Moreover, the borrower also has the benefit of very low monthly payments. This doesn’t mean that the car can be kept for just two years. The normal term for leasing varies between one to four years. Once the term of the lease has ended, the buyer also has the option to purchase the car at its present market value.

However, there are several disadvantages of leasing also. There are very strict driving rules in this choice such as restriction in the number of miles the driver can go. For example, some leases come with an allotted mile restriction of 12000 to 14000 per year. There is penalty if the leaser exceeds the aforementioned miles. Moreover, in case of any damages, the borrower has to repair the vehicle before returning it to the dealership.

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