Posted: Thursday, May 26th, 2016
If you’re trying to decide between an auto loan and an auto lease for your new car, you might be confused about what is true and what is not true about these two options. Find out more about the misconceptions that people have about auto leases right here.
Common Myths Busted:
You might hear horror stories about leasing, and how it can be much more expensive than other options, but the fact of the matter is that those stories are for the most part not true. Here are some of the most common misconceptions:
- Excess mileage charges add thousands to lease price: This is only true if you manage to drive tens of thousands of miles over the yearly maximum. Most leases have a 12,000 annual limit, which happens to be the average that most drivers travel in a year.
- Huge surprise balloon payments showed up at the end of the lease: Most leases do not have any kind of balloon payment. The only way you have a balloon payment with a lease is if you decide to buy the car at the end of the lease term.
- Minor damage caused thousands in fees at the end of the lease: You need to return your vehicle to the dealership in good condition – that much is true – but regular wear is not going to cost you anything extra.
- It is impossible to get out of a lease early: While it is never impossible it can be expensive to get out of a lease early. Make sure you read the contract and understand the cost of breaking a lease before you sign onto one!
The Advantages of Leasing a Car:
There are some major advantages to leasing when compared to buying:
- Leasing usually requires no down payment.
- Leasing lets you drive a late model car with the latest technology.
- Leasing allows you to drive a more upscale car than you might otherwise be able to afford.
- Leasing almost always offers a lower monthly payment than buying.
Let Green Light Credit Help
We want to make it possible for all drivers to get behind the wheel of a new or used car. Let Green Light Auto Credit help you understand your own financial situation, and make the best choice when it comes to your next vehicle purchase or lease.
Find the Financing You Need at Green Light Auto Credit
Contact Green Light Auto Credit online now or give us a call at (800) 200-5551 for more information about our financing or leasing, or to clear up any questions you might have regarding misconceptions about leasing.
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