What are the disadvantages of car leasing?

What are the disadvantages of car leasing?

  1. For some people, a feeling of ownership is important, however, with car leasing you do not own the car as ownership is retained by the finance company. In such cases it becomes a trade-off between how important it is for you to own the car versus a lower monthly payment and an upgrade of a car every 3 – 4 years;
  2. You have to commit to a maximum annual mileage at the beginning of the contract and there will be excess mileage fees if you exceed it.
  3. If you want to make any changes to your contract, or cancel it, you will have to pay a fee.
  4. It may not be cost effective to buy add-ons which are unique to that car.
  5. You do not automatically have the right to buy the car at the end of the lease – although you can sometimes negotiate to have it but only at the end of the term if it is important to you.

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