Leasing a car is a great way to get on the road in the car of your dreams; from the fees and costs, to the mileage and lease agreements, this article is here to show you the pros and cons of getting into a 12 month car lease.
A New Car Every Year
One of the most appealing aspects of the 12-month car lease is the ability to switch things up every year. Is that big SUV not as appealing as it once was? Is that sports car not big enough for the family? Why not switch it up? With only being locked into an agreement for 12 months the yearly lease affords individuals the ability to stay on the road in the vehicle that fits their ever-changing needs.
Worry-Free maintenance and Care
One of the other great advantages of a lease is not worrying about the maintenance and general care of your car. Servicing and regularly scheduled maintenance are generally included in the price of your lease, and should anything go wrong with the car, it is the responsibility of the leasing company to pay for any repairs.
Another great advantage of the yearly lease comes if you happen to use your car for business purposes. If, after talking to a tax advisor, you find that you can deduct vehicle costs for business, the cost of the lease can be deducted come tax time saving you a good deal of money every year.
Strict Mileage and Extra Fees
When it comes to leasing, one of the biggest disadvantages comes with the strict mileage restrictions they put into a lease agreement. Generally mileage works out to 12,000 to 15,000 miles per year. So if you're planning on driving more than that, you could be in trouble. If you go over your mileage you could be charged up to 25 cents per mile, which can get very expensive very quickly. You can buy more miles at the start of the lease although that can end in you paying extra money for miles you may never use.
One of the other big fees and costs you can incur comes when it's time to get a new vehicle and these fees come in two ways.
The first fee can come if you decide you want to break your lease early. If you're over your lease and just want out, you're leasing company is going to charge you steep fees for the opportunity to get out of your lease.
The other major fee comes when you've come to the end of the lease and you're ready to trade the car in. If the car isn't it excellent condition, i.e. if you have deep scratches, dents or torn upholstery, you will be assessed "excessive wear and tear" fees at the end of the lease agreement, and these can be steep as well.
What Works for You?
In the end, the major disadvantages that come with a lease are usually monetary. Whether it comes in the form of wear and tear, mileage fees or if you just want to get out of the lease, these can be big negatives. But if you know what you want, how much you're going to be driving and even what you're really going to be using the car for, then these fees are really negligible.