When you lease there are many different factors that you have to consider. If you drive a lot in a leased car and put many kilometres on it each year, there is a risk that the mileage limits set out by the leasing company will be exceeded and you’ll have to pay extra for it. For example, if you are limited to 18,000 kilometres annually for a three year lease, it adds up to 54,000 kilometres in total. If there are 60,000 kilometres in your total mileage driven, and you have to pay $0.18 per kilometre as a mileage penalty, you will owe the leasing company an additional $720, which can equal the amount you pay for one or two months’ leasing. With damages on a leased vehicle the same principle applies, and if you return the vehicle with more damage that is considered normal wear and tear, you will be charged for the damages.
But leasing can be very beneficial because the lower monthly payments are easier to handle, and this often means that leasing a fully loaded high trim vehicle with a powerful engine can be very affordable. When you return the car back to the dealership after the lease is finished, you have the choice of buying out the car if you like, and either keeping it or having the opportunity to return it. Many drivers who lease vehicles prefer to start the whole cycle again with a brand new vehicle lease. Since leasing terms usually fall within the manufacturer’s warranty period, leasing is a benefit because no large repairs will be charged to you.