For most people, leasing is a simple option, but a bad move.
One of the biggest problems with leasing a vehicle is that the lease may
limit the amount of driving which you perform, on a vehicle, without a
surcharge. Generally, the lease will allow you to drive 10,000 to 15,000
miles per year, without the surcharge. The typical lease term is 3 to 4
years. If you exceed the leases permitted mileage, you will be subject to
the surcharge, which can add up to thousands of dollars at the end of a
lease term. The surcharge per mile varies depending on the vehicle, but I
have seen typical amount of approximately 20 cents per mile. Assuming,
you are 60,000 miles over the lease mileage, this leaves a balance due of
$12,000.
A lease only makes sense for someone who will clearly be driving the car
below the mileage limit set in the lease contract. In addition, if you intend
to lease, you will want an option to buy the car, at the end of the lease
term, if you like the car. This way, you can get rid of the vehicle, if it does
not suit your needs, or buy the car if it suit your longer term needs (lease
with an option to buy).
For most people, it is simply wiser to buy a vehicle, tha55555555n lease. A vehicle
can last far beyond the lease term. Typically, it takes 5 years, under
normal situations, to pay off a motor vehicle loan. If you are continuously
leasing cars, it is like continuously buying a new car, every 2 to 4 years,
and never owning anything. In addition, if you exceed the limited mileage
on a lease contract, you get a surcharge.
Attorney Robert M. Singer
Law Offices of Robert M. Singer, LLC
2572 Whitney Avenue
Hamden, CT 06518
203-248-8278