Leasing a car is a viable option for those who need one, but would you prefer that to buying a car outright? However, not all lease deals are created equal. Some of the topics discussed below include how to lease a car, long and short-term leases, and what “wear and tear” is acceptable on a leased car.
Short-Term Car Lease vs. Long-Term Car Lease: Which of These Lease Deals Is Better For You?
There are a variety of advantages and disadvantages to having either a short-term and a long-term lease. Before you decide which option is right for you, ask yourself the following questions:
- Do you need a car for more than six months, but less than 24 months? If so, a short-term lease option is best for you.
- Are you concerned with having a lower monthly payment? If so, a long-term lease will be a better option than a short-term lease.
- Other things to take into consideration, when choosing a lease option, is the following:
- Gap insurance: this is insurance needed to bridge the difference between what your car is actually worth and what the fair market value is. This is essential because, in the event of an accident, your insurance company may not be able to cover the full amount of what you owe the leasing company.
- Warranties: will they be jeopardized on your car if you get non-dealership services, or “after market” parts?
- Subleasing: be advised that, unless you get permission from the leaseholder, you cannot sublease your car. Therefore, consider how long you really need the car for before leasing it.
Wear and Tear: What Qualifies, and What Doesn’t?
When you’re getting ready to turn in your car, certain things do, and do not, qualify as normal wear and tear. Please be sure to keep this in mind as it can result in incurring additional fees when you turn in your leased car. Before the dealer whips out his car lease calculator, make sure you keep the following in mind:
- Mileage: keep your prescribed mileage in check—you will be hit with severe overage fees if you go over the prescribed mileage.
- Detailing: if your tires are bald, your bumpers have “dings”, or your interior is too filthy, it pays to get your car detailed. If you allow the dealership to do it for you, you’ll have to pay the price.
- Any missing parts—such as spare tires—must be replaced before you return the car, or you will be charged for the replacements.
Should You Buy Your Car Instead?
Sometimes, leasing a car isn’t the best option, even if you get one of the best cars to lease. The following is a list of reasons why you should buy a car instead of leasing it:
- Do you plan on keeping the car after the lease term is up? If you’re the type to have a “long-term relationship” with your cars, then buying a car is cheaper—and better—for you in the long run.
- How hard are you on your car? If you tend to be rough with your cars—whether deliberately or not–then buying a car is a smarter option in the long run—leasing a car that you’re hard on will result in substantial fees.
- Do you need to drive a car for business? For taxation purposes, you cannot deduct the use of a leased car from your taxes. However, a purchased car can indeed be deducted from your taxes.
Regardless of whether you choose to lease or buy a car, Luxe will be able to provide you with a variety of on-demand parking and car services to suit your needs. Download the app today to learn more and get started!