One of the greatest benefits of leasing a car is that there is often no upfront costs, whereas when you finance a vehicle you often have to put a large sum of money down. Leases require little or no down payment and there are no upfront sales tax payments. Another pro is that the monthly payments are typically cheaper than they would be to finance the same vehicle and you get the pleasure of owning a new vehicle every few years. When it comes to leasing, you are essentially renting the car for a fixed length of time, usually anywhere from twenty four up to sixty months and you will only pay for the use (or depreciation) of the car for that period of time. Also, you are not responsible for absorbing the full depreciation cost of the vehicle when leasing.

Leasing a car will never put you in the upside down position many people find themselves in when financing a car, especially with the new finance rates going up to seven and eight year terms. Leasing is also a good option for business owners who may be able to write off some or all of the expenses associated with leasing a vehicle, depending on how much it is used for business purposes.

Leasing does have its downfalls as well, such as the fact that you will always have a car payment if you lease one vehicle after another. As long as you lease you never really own a car, though you do have the option to buy it out at the end of the lease.

The mileage restriction of leasing can be a major drawback for some people, particularly sales people who have to travel for work or people who live far away from family and like to visit often. Most leases restrict your mileage usage to somewhere between 12,000 and 15,000 kilometers per year and for some people this is just nowhere near enough. If you go over your allotted miles, you can expect to pay about 15 cents per kilometer that you have gone over. It may not sound like much, but if you go over your limit by 4,000 kilometers, that can end up costing you around $600 at the end of your lease.

One other downside to leasing is that insurance companies tend to charge higher coverage costs for leased vehicles; however, depending on your age, driving record and place of residence, the additional cost may not be too much.

Author: Andrew Kosinski

About the author:
www.BestCarLeaseInfo.com provides a variety of information about car leasing. You can stop by my site and get a free education on car leasing right now. Be sure to check out my page on car leasing deals.

Article source: Free Automotive Articles.