Previously we discussed if leasing was the right move for you. Now that you've decided leasing is something to consider next time you buy a new vehicle, lets examine some of the pitfalls of leasing:
Pitfalls of Leasing
Terminating a lease early could cost you dearly. If you purchased a vehicle utilizing the traditional financing method, you would also lose on the depreciation in case you decided to trade the vehicle for another one within the first twelve months or during the mid-point of your payment cycle.
And, if you think you may want to break the lease early, occasionally an automaker may waive up to six months of your final payments, without a penalty, provided you're not over the mileage and you purchase another vehicle by the same car maker. According to the Consumer Bankers Association, 22 percent of the leases in 2004 did not reach their full term. Beyond the low monthly payments, there are pitfalls to leasing. Before terminating a lease early, consider advertising your vehicle on swapalease.com.
You never own the vehicle. The overall cost of the vehicle could possibly be lower had you utilized the traditional financing method.
