Although changing your vehicle every 2-3 years sounds amazing, you might want to rethink your next move, before changing the vehicle you are with now. Besides the fact that you can’t have any emotional attachments with your leased vehicle there are 8 main disadvantages of leasing a new car.

Insurance

When you lease a new vehicle you are sometimes required to buy the higher insurance packages. The reason to this is so that the leasing company you are leasing a vehicle from does not have to worry if there are any sort of accidents in the short term.

Expensive Overtime

When you lease a vehicle, you are expected to return it to the dealership after the lease is over. Not only do you have to worry about the monthly payments of the vehicle right now, you also need to plan ahead because when the lease is over, you are left without a car. This being a reason, it is better to purchase a used car because you will still be giving monthly payments for a low cost, but in the end the vehicle will be all yours.

Fees

When your lease is over, the vehicle you were driving goes through a very strict inspection. Any damages that have occurred to the vehicle will be very costly. Some examples of these damages are: Tire wear, a small ding on the body, and brakes being too worn out.

Mileage Issue

When you lease a new vehicle, you do not have unlimited miles. The amount of miles you can put on your car is very limited. It ranges from 10,000 miles, 12,000 miles, and 15,000 miles.

No Customizations (For People Who Like Mods)

Your vehicle will not be unique, or just the way you wanted. You can of course change parts on the car without the dealership knowing but in the end, you will come out with a loss since you need to put the original parts back on and the other parts you purchased will just be sitting in your garage, or you can sell them for a much lower price.

Good Credit

To be able to lease a vehicle is not all easy. You first need to have a down payment on the vehicle. If your credit score is not good then the dealership will not lease the vehicle to you.

Cancelation

Once you lease a vehicle, you are stuck with it. You cannot return it. You will be paying the bills of your not desired vehicle. On the other hand if you purchase a vehicle you can sell it and make money off of it.

Tricky

When you go to a dealership to lease a new vehicle, the salesperson will do everything to have you leave with a brand new car. Salespeople most of the times lie about certain packages or mile issues before signing the papers.

Source:http://www.realcartips.com/leasing/0435-disadvantages-to-leasing-a-car.shtml

According to the website Groove Cars, https://www.groovecarinc.com/blog/auto-leasing-is-booming/, leasing new vehicles has become the go to option for replacing your vehicle. 30% of cars or trucks on the road used to be leased vehicles. Now it is a whopping 70%. Dramatic difference!! This has decreased used car sales, and has impacted the auto parts sales industry.

It has been concluded that newly licensed drivers aim to lease new vehicles because of the cheap monthly costs. Leasing has become much more reliable and convenient in every household. Towards the end of 2018 people leasing cars had risen 30% more than the average amount, which had lowered the values of used vehicles. The statistics show that there is no competition to leasing vehicles unless the used vehicles are being sold for a much lower rate and price. Dealerships have increased their new car sales by leasing. It shows that the sales have increased 75%-80%. Nowadays many dealerships are lowing the minimum credit score allowed to lease a car, and the deals that they are offering are out of this world. Yes, I agree leasing a new vehicle is a great option to change your car but, the downsides of leasing a vehicle have many. Stay tuned on this website to see the downsides of leasing coming soon!

Vehicle leases have been increasing over the years. Dealerships 80% of income comes only from leased vehicles. Small business that sell used vehicle parts are having a negative in their annual income as the newly leased vehicles are increasing and replacing used and old vehicles. I decided to make this website to blog on the direct effect dealerships are having on used auto dismantlers in the United States and how it effects the economy. Just to give a glimpse on the perspective, since we live in the San Fernando Valley. In the 2000s there were about 180 auto dismantlers only in San Fernando Valley. Now there are only 60 left that are struggling to find income. Many of these small business owners including me have come to a realization that the only way to increase income is buy selling parts for vehicles 2017 and up. Although it is easy to realize that the way to make money is having parts of newer vehicles, it is very expensive to own these new parts. These business closing leaves many companies in debt and leaves many people unemployed. Leasinf vehicles have many downsides and can actually be a waste of money. But the auto dealerships will never tell that to your face. They lure you into the dealership and then not allow you to leave until you lease a new vehicle… Even if it is not the right deal you were looking for.