3 Mistakes to Avoid when Leasing a Car
New cars cost a lot of money, and leasing has emerged as a cheap alternative to owning a car. Most people in the country live on a monthly budget, and their assessment before buying something is whether they can afford it in that month. Leasing works on the same idea by allowing people to use a car without having to pay a large amount like in financing. While a lease can decrease your monthly expenses on a car, it is not a suitable option for the long term, and financing a car is a better option in such cases. When wondering about car finance vs. car lease, here are some mistakes you should avoid while leasing a car: 1. Paying too much money upfront Car dealers drive their promotional efforts into advertising lower monthly lease payments on a new car, but you would probably have to compensate for that by paying thousands of dollars upfront. This money is essentially a cover for a portion of the lease taken in advance. However, if the car is stolen or damaged in the first few months, you would get the bad end of that. In such a case, the insurance provider would pay the car’s value to the leasing company, but the amount you paid as coverage would not be returned to you.