The pros and cons of leasing a car

In the market for a new car? You might be considering leasing it, allowing you to pay for it for a fixed period of time (often three years) while making monthly payments until the lease expires. Leases are short-term rentals up to a maximum of three years, and typically the cost of rental also includes services. While leasing is newer than the traditional ownership options, it has quickly risen in popularity.

These are the pros and cons of leasing a car:

More flexibility

  • Drivers wanting more flexibility gravitate towards leasing as it offers the option to drive a new car every few years. 

Lower costs

  • When compared to buying, the monthly payments on a leased car tend to be lower. 

Good cars

  • You're always driving a newish car and one that’s generally covered by the manufacturer’s warranty. You also get to drive a better car than you might otherwise be able to afford. 

No sales hassle

  • You don't have to worry about car depreciation or selling the car. 

Limited kilometres

  • Companies that lease cars are very strict about the number of kilometres the car can be driven, with stiff financial penalties for any distance over the agreed amount. 

Wear and tear

  • A lease allows for normal wear and tear to the car, but if it’s found to have more wear and tear than is considered fair, you might be charged extra. 

Penalties for early cancellation

  • If you don’t fulfil the full term of the lease, you’ll likely face penalties.

No ownership at the end of the day

  • After all those payments, you don’t have anything concrete to show for it.

Looking for a new car? Check out our marketplace

Not interested in leasing a car? Consider buying a previously-loved car – this is a more affordable option when compared to the cost of buying a brand-new car. With thousands of cars listed in our marketplace, we can help you find the car to suit your needs. All our vehicles have a proven service history and undergo a stringent 116-point quality assurance check. We can also help you arrange finance and insurance for your new set of wheels.

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