Efficient mass transit is on the rise in Phoenix Arizona. The Valley Metro Light-Rail system began in December of 2008 and has plans to continue expansion across the Phoenix Valley area well into the 2030s. Yet, as of now, only one strip of light-rail, running from Sycamore and Main in Mesa to Chris-Town Mall in Phoenix, is currently operating. What does this mean for Phoenix Arizona residents? Until we have a criss crossing mass transit rail system in the 2030s, a car is still a necessity for most of us.
This reality begs the question: To buy or to lease? This is a question that every Phoenix Arizona resident has asked themselves. Buying a car is a relatively straight forward issue, and to get into the intricacies of an auto loan would necessitate an article all its own. Leasing is a different issue, and a mystery to many of us. Is it better to lease? To help us make an informed decision about the matter, lets take a look at the pros and cons of leasing.
Pro:
Down Payment: Leasing a car usually requires a lower down payment than purchasing. Some leases do not require a down payment.
Always New: When leasing a car, you are always driving a new model car. After the car is driven for a few years, you can return it to the dealer and get another lease for a new car.
No Negative Equity: In a lease you are only paying for the time you are using the car rather than buying it, so you will never be in a position where you owe more than what the vehicle is worth.
Con:
Vague Definitions: When leasing a car, make sure you clarify any vague terminology in the lease. Many leases charge you extra for “additional mileage” and “excessive wear and tear” but these terms may not be clearly defined.
Early Termination Fee: If you have the need to end a lease early, expect to pay early termination fees. These can be excessive, so read your lease carefully before committing.
No Customization: Any customization to a leased vehicle that would alter it in a permanent way is not allowed under a lease.
Payments Forever: When you lease a car, you are essentially renting it for a specific period of time. This means you never own the car you are driving, so you will always have a monthly car payment as long as you lease.
Now that we have had a look at some of the ways in which a leased car may be a good fit for you, or perhaps not quite right for your situation, you can stop by any Phoenix Arizona auto dealership to learn about it in more detail.
