In recent years, leasing has become a more mainstream alternative to buying. If you are thinking about leasing at a Manhattan Alfa Romeo dealership, it’s important to know some of the pros and cons to make the best decision.
Pros of Leasing
On the surface, leasing can be much more appealing than buying. Monthly payments can be lower since you aren’t paying back any of the principal. Instead, you are just borrowing and paying the amount the car depreciates when you have it and any finance charges. When you lease a vehicle at a Manhattan Alfa Romeo dealership, you get to drive the car during the trouble-free years. You are also driving a car that can be covered by the manufacturer’s warranty and this can include free oil changes and maintenance.
One of the main benefits of leasing is that you can drive a better equipped and higher-priced vehicle that you may not be able to afford otherwise. You don’t have to worry about any fluctuations in the trade-in value or go through the hassle of selling the vehicle when you want to get a different one. There can also be different tax advantages for business owners.
Cons of Leasing
While there are many pros of leasing, it’s still important to be aware of some of the downsides. Leasing can end up costing you more than an equivalent loan since you are driving a depreciating asset. If you continue to lease then you will always be paying monthly payments. If you buy a vehicle, the longer you keep it after the loan is paid off, the more value you get. The cheapest way to drive a car is to buy it and then keep it until it doesn’t run anymore.
If you drive a lot then a lease may not be the right choice for you since lease contracts will specify a limit on miles. If you go over the limit then you will have to pay a penalty for excess mileage. This can range depending on the dealership and you don’t get a credit if you have any unused miles.
If you aren’t maintaining the vehicle then you will also have to pay some excess wear and tear charges when you turn it back in. If there are parking lot dents, be prepared to pay extra. If you need to get out of your lease before it’s over then you can also have fees for early termination and these fees are due at once. There are some exceptions, such as window tinting, but you need to turn the car back in as it was left in the showroom minus the normal wear and tear.