After a housing loan, the biggest expense for every family is an auto loan. That’s why leasing a car vs buying one has long been a debate for many families and both have its own pros and cons. Quite a few aspects come into play when wondering if leasing a car is a good idea. So, we’ve put forward the top benefits and drawbacks of such a deal.

Benefits
Honestly, if you’re comfortable with leasing a car, you could actually reap many benefits, such as

• Cost-effective Option
  Leasing a car is a cheaper option than purchasing a new one for the monthly payments. This rate is based on the depreciated value of the vehicle as compared to the traditional auto loan that charges interest on face value. In fact, the lease also covers insurance, maintenance, and other recurring costs that traditionally come with purchasing a new car.
• Perfect if You Like a Change
  If you’re someone into changing rides often, this is when leasing a car is a good idea. You get to experience different brands and drive more luxurious cars than you’d ever get around to buying one.
• Free Maintenance
  You’re covered for all mechanical failures and other related issues throughout the term of the lease as opposed to buying a new vehicle where you would have to bear the cost. A leased car hardly requires anything more than regular maintenance.
• No Resale Required
  With a leased car, all you have to do is return it to the dealer. This option eliminates the entire process of reselling and haggling.
• Tax Benefit
  A leased car can help you maximize tax deductions by writing off the monthly expense from your accounts. Thankfully both depreciation and costs incurred in a private and business car are considered.
• Easy Purchase
  At the end of the lease, instead of handing over the car to the dealer, you can buy it from them at the predetermined cost. This benefit is always a part of the lease.

Drawbacks
While we’ve taken you through the benefits of leasing a car, to help you make an informed decision, here are the drawbacks that come with it:

• No Customization
  When you lease a car, you don’t get any freedom to customize your ride to your liking, which may not be a good long-run idea. Be it getting leather seats, infotainment options, or color, there’s nothing you can do to change any features of a leased car.
• Low Flexibility
  Along with paying initial acquisition fees, you may have to pay for accidental damages while returning the car if the lease insurance doesn’t cover it. You also will be charged for every extra mile if you exceed the mileage that the lease entitles. Also, lease contracts come with a hefty termination fee.
• Not a good long term option
  Leasing a car is beneficial when you’re looking for a short term situation. A long term lease could cost you far more than buying a car, owing to its numerous fees. So, it’s important to know whether leasing is a good idea, considering these cons.