Question

What are the advantages and disadvantages of leasing personal property?

Answer 1

A huge advantage of leasing a car is the cost. Lease payments are lower than loan payments for the same car. Often, there are no upfront charges such as a down payment that is required when purchasing. Another advantage to leasing a car is that people can switch cars at the end of the lease. This for people who get bored with vehicles easily and for those to want to keep up with the latest vehicles and technology. Another advantage is that there is no long term commitment. This is great when people expect to travel for work a lot. Sometimes, people don’t need or want the car for more than a few years. Also, there tends to be few maintenance and repair issues are leased vehicles. The chance of a huge repair is very small. A disadvantage of leasing a car is that there is no ownership. Once your lease is up, you have nothing. When people purchase a car, they look forward to the day they finally pay off the loan and never have to make a monthly payment again. But people to lease will always have to worry about paying every month. Another disadvantage is the restrictive terms that is required with each lease. Sometimes, people cannot drive over a certain mileage or else they could get penalized and have to pay more. Sometimes, people have to keep up with required maintenance. You will have to follow everything that the lease requires you to or else you will get charged. At the end of the lease, the car basically has to be in like new condition.

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