Q:

Is leasing a car a good idea?

A:

Quick Answer

Leasing a car is a good deal for drivers who trade their vehicle every two to three years, according to Kiplinger.com. However, before signing the lease, it is essential that the driver negotiate the terms to meet his particular driving habits and understands the contract. Consumers who typically continue to drive their vehicle a few years after paying off the loan in full tend to lose money with a lease.

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Full Answer

Car leases often have a limit to the number of miles the driver can put on the vehicle without paying a penalty. However, it is possible for a consumer to negotiate the number of miles included before signing the contract, usually at a much lower rate than the penalty rate. When making these negotiations, it is important to note that the monthly payment will increase as a result.

Before leasing a vehicle, individuals need to know the terms of the contract with regards to maintenance. Most lease agreements have a penalty for not maintaining the car. Typically, the driver pays a penalty for any scratches larger than a credit card in the finish, unless he has them repaired before returning the vehicle. Consumers should also read the contract to determine if it is possible to terminate the lease early or transfer it to someone else before making their decision.

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