Some more things to consider when leasing.
Not in for the full term? You will be screwed. Lease contracts are designed to prevent or discourage early contract termination. Usually there is a hefty fee involved along with paying the rest of the payments. If you think leasing is best for you make sure you pick a term you can live with. Early termination is the most common issue people have with leasing.
Excessive mileage? Usually leases do not allow for driving over 15,000 miles a year. The lease companies will charge a per mile fee mileage over the allowed amount. Excess mileage can add hundreds or thousands of fees to the end of your lease.
Customization or abuse of your Jeep. This is going to be a kicker for most Jeepers that want to build up their Jeep. If you start altering components on the Jeep and cannot return it to original condition I can’t imagine what that would mean when turning in a vehicle. You are responsible for insurance, upkeep, and maintenance just as with a purchased car. Some people mistakenly believe the leasing company is responsible.
Poor or no credit. Leasing companies take a higher risk on leasing vehicles than cars. Making higher payments on a loan build equity quicker than the lower payments associated with a lease. Therefore, a leasing company stands to loose more buy extending a lease to an individual that is more likely to not make payments.
This article was compiled from reliable recourses on the internet. As usual, do your homework, research, and do not jump into anything under informed. Leasing can be a worth while method of having a new vehicle, just make sure it is for you.
This chart assumes person 1 leases a new vehicle continuously for a period of 13 full years, person 2 buys one vehicle and keeps it for 10 years and buys another and pays it off in four years.
Note: This does not take into account any trade in value of the 10 year old vehicle.
|28,000 vehicle. Assume 1% increase in price per year|
|4 year lease||4 year loan at 5.45% interest|