Disadvantages of leasing a car.

April 20, 2012 - PRLog -- Car leasing is a process by which you make a monthly payment on a vehicle in order to rent it, but you rent the vehicle for only a set amount of time and return it once the lease is up. Like many things in life, there are both advantages and disadvantages to this process, depending on personal preference and financial situation. You should consider these pros and cons completely before you decide to lease a vehicle. There are quite some disadvantages more than having some few advantages of leasing a car in my point of view. Let me explain some negative facts of leasing a car in the following which might help you also to think before hiring or leasing a car.

Contract cancellation

If for some particular reason you select or are forced to cancel the agreement before the car leases contract term is due, you will be required to pay much as a penalty charges. The leaser seeks to protect itself from any potential loss risks and that is the reason why, the penalty charges of breaking the contract before its terms are quite punitive.

Mileage penalties

It is true that car leasing agreement stipulates the maximum mileage that you might cover under the leasing contract. If the company from which you are leasing feels that you have used excessive mileage, you may incur a penalty and have to pay to accommodate for the mileage over a specific limit. To combat this, you should read the leasing contract and ask questions to find out how many miles you are allowed to drive over the life of the lease. Or else, in the end very high fees for every mile will be required beyond the contract limit. Even if you will not use all of them you are sure to spend less then in the case of overspending original amount.

Insurance premiums and repairing or modifying

When you lease a vehicle, the auto insurance that you must get is much more extensive and comprehensive than the requirements for when you own the vehicle. Additionally, you will still have to maintain the car that you are leasing as if it were your own, and all the maintenance costs must come out of your own pocket. Speaking of maintenance costs you have to think about the sudden accidental damages or as usual updates which are quite normal for any vehicles. Such as, even if you lease a car, you are responsible for minor repairs and maintenance like oil changes, accident-related repairs and tire wear and tear. Small or massive denting or painting whatever it is the charges of payments will always yours. Other small disadvantages are you will not be allowed to modify your car (stereo system, fancy bumpers or rims, lights, painting the car etc.) in anyways as your will.



Enough credit requirement and long term payments

You must have a good credit score to lease a vehicle from most companies. It is sometimes easier to qualify for a traditional auto loan than to qualify for a lease agreement based on your credit. Over time, leasing is more expensive than financing a car through a traditional automobile loan. If you decide to keep your leased car, after you pay the remaining depreciation costs, you will nearly always have paid more for the car over a term of 5 years or more than you would have paid had you purchased the car through a traditional loan. Think of it this way. If you lease three cars over the period of 6 years, you will pay more than if you purchase one car through a loan, pay the car off in 5 years then go on to drive the car for another 4 to 5 years absent monthly payments. If you never purchase the leased car outright, you will continue to have to pay monthly leasing installments and never own a car outright.

Resell value

Lastly, the depressing and the worthless thing is that whatever you do the car that you are having with you is not yours. You cannot resell or trade a leased car unless you pay off the remaining depreciation at the end of the contract.


Well, these are the basic disadvantages which you will have to face for sure for leasing any types of motor vehicles from any automobile company. I am not saying that leasing a car is totally a lose project but just trying to aware you by all those above points, so that you will think more wisely before, where you are about to invest your money and strength.

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