The leasing alternative addresses many desires. Because the lease term is typically shorter than the term for a loan, it allows us to move on to the next car more quickly, and payments tend to be more affordable than loan payments.
- You get a new car more often, usually every two to four years.
- Your overall outlay is less, because you pay for the use of the car only for a set number of months.
- You may get more car for your money, since lower lease payments let you go for more options and features.
Leasing offers other unique benefits. For example, leasing allows you to pay the sales tax over the period of the lease, rather than all at once when you register the car, as is required in some states. Leasing also provides added insurance against unexpected losses.
- You're locked into monthly payments.
- Your mileage is restricted, usually to about 12,000 to 15,000 miles per year.
- You return the car at the end of the lease, and you own nothing.
Check out these car-buying tools.
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