Car Leasing Pros and Cons to Help You Decide

car leasing pros and cons

Car leasing is a growing trend in the world and is gaining more and more popularity by the day. This is not only because it is a financially viable solution but also because it offers the user many other amenities as well. But as with any other service in the market, car leasing has its own set of flaws with lack of complete ownership being the biggest of them. Although it is a growing trend, not many people are aware about this process due to the novelty of it. So given below is a handy guide structured based on car leasing pros and cons:

Pro #1 – Low cost

As mentioned above, the economic viability of this process plays a pivotal role in its sales. Usually in a car purchase, the customer applies for a loan, purchases the car and spends the next several years  paying it off. But on the other hand, car leasing payments are lower in terms of both payment and payment time. When in financial difficulty, you do not have to make your payments since the contract can be terminated. Furthermore, since most car leasing contracts are made for a minimum of 4 years, the customer will not have to spend much on upkeep, maintenance and repair.

Pro #2 – Flexibility

Unlike car purchasing, leasing is usually done according to the customer’s terms. He/she will be given a say in the lease period as well as the amount. Leasing a car enables you to drive a new model every once in a while. This way, you do not have to be stuck with an outdated car. Furthermore, since this process has fewer financial restrictions, you will be able to choose a car that you like rather than a car that you can afford.

Con #1 – Mileage limits

A car lease contract restricts you from driving to your heart’s content. The contract will give you a mileage limit which you will have to adhere to in all situations. The usual mileage value given for a customer is between 12,000 – 15,000 miles per year. Failure to comply will result in penalty. That is, you will have to pay compensation for every extra mile that you drive. This limits spontaneous car trips and forces the user to stick to a preplanned schedule.

Con #2 – No customization

Despite all the advantages, the bitter truth is that, the car does not belong to you. It is a property of the leasing agency and is only temporarily borrowed. So you are expected to return the car at the end of the lease period. Although most users include additional sound systems, accessories, and gadgets and even change the color of the car after signing the lease contract, all modifications must be reversed before the car is returned to the agency. This way, you will have to pay for both installing and removing the modifications.

So remember to do your research before making the final decision. Instead of going with trend, choose the option that suits both your financial and driving requirements.

How To Maintain A Debt-Free Lifestyle With Your Sanity Intact

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Living completely debt-free is challenging – but not impossible.

Many people succeed in living their lives without falling too deep into debt. People of different ages and income levels have made this choice. It requires dedication, but if it’s something you want, don’t allow naysayers talk you out of it.

There are multiple methods out there for people like you who are looking to cut spending, pay debts, or avoid it all together. The important thing is to choose a system that works for you. Review yourself. You know your weaknesses, and that’s where you should start.

Here are a couple of ways to avoid acquiring debt.

Pay off any debt immediately. For many people, it helps to use physical currency to avoid making impulse buys or racking up a huge credit card balance. A credit card makes obtaining expensive things easier. Renting a car, traveling, making hotel reservations, and splurges on technology. If you know yourself as an impulse spender, and a credit card isn’t something you can handle – just don’t get one. Otherwise, don’t be afraid to use your credit card for its rewards points and cash back. Never wait for the monthly bill, instead pay it ASAP. This will force you to think about how much money you have before you swipe.

Build Large Savings. Earning a sizable savings account is a feat in itself. It’s also the most effective way to stay out of debt. Think of your savings as a preparation for emergency expenses. This way, when car repairs or medical bills pop up, you won’t rush to your nearest credit card. Saving is also essential if one of your goals is to purchase a property of your own. When it comes to choosing mortgage, home loans offered by Newcastle Permanent is a perfect place to start looking.

Get a cheap used car. Many of us can’t afford a brand new car outright, so many opt to take on a car payment. But here’s the deal: No one needs a car loan. There are plenty of dependable used cars available out there. There is a risk involved in buying a used car, but there is also a risk in dealing with wily salesmen at the dealership, who often mislead you into buying restrictive and costly warrantees. Do your research on reliable car types, take a good mechanic with you, and use your judgement when purchasing your car. Buying a good car can last for years with relatively little maintenance.

You can also utilize public transportation depending on your location, but in rural areas, a car is often a necessity.

Rent. Boy oh boy, what happened with “why rent when you can buy” philosophy I see every day? While renting for life sounds like a living nightmare to some people, real estate is not cheap either. If you are committed to staying debt-free, then housing is your biggest challenge. That aside, saving up for a good home is a totally plausible idea once you save enough for a mortgage and is employed in a steady company. If you’re single and living alone is out of your budget, consider subletting or renting a room until you’re ready to get affordable home loans in your preferred location.

Being debt-free starts with a conscious effort and a commitment to follow through your objective. Best of luck!

How to Navigate the Purchase Process for First Time Home Buyers

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You’ve got your dream job.  Your student loans are under control. You’ve actually managed to save some money. Buying that first house or condo is now number one on your bucket list.  It’s so tempting to get started by browsing through all the real estate websites online, falling in love with a neighborhood or style of home.  Downtown, suburbs, house, condo – what’s the perfect fit for your lifestyle?

Before you go overboard surfing the internet for your perfect home, there are some pretty systematic steps to follow.  Your number one priority is to meet with a mortgage banker or mortgage broker.  These professionals will review your employment, savings and credit history.  More important, they will let you know the maximum amount you can borrow based on the information you provide.  Your mortgage professional will then provide you with a ‘pre-approval’ which you’ll need to provide when signing a contract for purchase.

Just because you can afford a high payment doesn’t mean you should buy a home at the top of your price range.  Home ownership & home maintenance is always more expensive than you think! Older homes have hidden costs & chic downtown condos come with pricey monthly homeowners association fees.

Now that you have pre-approval in hand, the next professional on your list should be a quality real estate agent.  Ask for referrals and try to connect with an agent that works with first time home buyers.  The agent will help steer you in the right direction with neighborhoods, amenities and pricing.  A good agent will also help you prioritize your wish list items for your new home.

Before finding the perfect home, decide on the area in town that’s most preferable. Consider your commute, amenities in the area, access to highways, etc.  This will help narrow down your search considerably.  It’s all about location!  With the price range, home type, amenities & location nailed down, your agent will be able to narrow your search to a more manageable number of properties to view.

You’ve found the perfect property. Your real estate agent has negotiated a great deal on the price and your mortgage banker has approved your loan.  Your last step is to have a serious celebration at a special occasion restaurant.  You’ll remember this meal for years to come. The Midtown Grille in Raleigh, NC is just the place for that special celebration! Congratulations homeowner!