Myths About Leasing A Car

Each one of us has different requirements and while leasing a car may not be the best idea for some, it makes complete sense for others. However, these differences have lead to certain myths about car leasing deals keeping many people who can actually benefit from these deals away from them. Bad press has also played a part in defaming private and company car leasing. The following are some of the most common myths about car leasing:

  1. Leasing is not for you if you drive a lot

There is no doubt about the fact that most if not all car leasing deals have an upper limit for the number of miles on an annual basis. It is not unusual to be restricted to, say, 10,000 miles after which extra charges are levied. If you need to travel long distances on a daily basis, this can be a bit of a problem. That said, you must note that it is possible to negotiate with your dealer a higher mile limit annually. In fact, even if you land up paying extra for the miles you have crossed, it all tends to even up at the end. The reason for this is that even if you own a car, you are bound to get a lower resale value for it if you’ve done more miles on it. It is therefore completely reasonable for a personal or company car leasing dealer to charge a bit extra if you overshoot the mile limit. navigate to this website

  1. Breaking a lease is financially crushing

If you suddenly decide to break out of your lease before the stipulated period of time, there is no doubt about the fact that your dealer is going to slap an enormous cancellation fee on you. However, you can always avoid these fees by finding someone to take over the lease from you. There are many services that connect people with car leases with those looking to lease out a car allowing them to swap leases. This is a great way to avoid any extra charges while cancelling your lease. However, make sure to read through your lease contract thoroughly to ensure that there is no clause prohibiting the transfer of your lease.

  1. Leasing will cost you more than buying

This is not a universally binding law of any kind. This only holds true if you purchase a car and manage to drive it around even after you have paid off the loan. On the other hand, if you plan to sell off the purchased car before finishing your loan payments, car leasing deals will save you more money. This, of course, holds true if you do not break a lease or overshoot your mileage limits.

  1. Negotiation of a good deal is not a possibility

This is one of the biggest myths surrounding car leasing. It is totally possible to negotiate a good deal with a personal or company car leasing company provided you are well aware of all the technical jargon. You should try and negotiate over the capitalized cost in order to get this elusive good deal.