Why is leasing a car so cheap?
Why is leasing a car so cheap? Monthly payments are usually lower because you're not paying back any principal. Instead, you're just borrowing and repaying the difference between the car's value when new and the car's residual—its expected value when the lease ends—plus finance charges.
What are the disadvantages of choosing the lease?
3. The Cons of a Lease
- You may not be able to make changes to the property: ...
- The rent may increase: ...
- You may not be able to stay in the property for long: ...
- The property may not be in good condition: ...
- You may have to pay for repairs and maintenance:
Who benefits most from leasing a car?
You're a Low-Mileage Driver If you typically log between 10,000 and 15,000 miles per year, leasing a car might make more sense than purchasing one. Just be aware that if you exceed the mileage listed in your contract, you could be charged a hefty fine at the end of your term.