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Are there downsides to leasing?

There are potential downsides to vehicle leasing that will deem it unsuitable for some.

We list these below:

Leasing requires a healthy credit score.

If you have a bad credit history or a low credit score you are unlikely to be accepted for a lease

There are restrictions on mileage and vehicle condition

If you are likely to cause excessive damage to your vehicle or cannot accurately predict your annual mileage requirements, leasing may not be the best option for you

The car will be repossessed if you default on payments

If you take out a lease it is important that you can afford to do so and do not anticipate any changes to your circumstances that would affect your affordability. If you do end up defaulting on your payments there can be charges for doing so and the car may be repossessed.

You cannot customise the car

Any changes you make to a lease car must be removed before you return it. Any changes you do make must not fundamentally change or damage the car in any way. If this is ignored you will face charges when you hand the car back.

There is no ownership option

Vehicle ownership can be an important factor for some car buyers. Unlike with a PCP, with a lease there is no option to own the car. If ownership is not a concern, leasing can be the cheapest vehicle procurement alternative.

Needless to say, there are potential downsides with any means of funding your car. It is important to consider all options and, depending on your circumstances, the benefits of leasing can far outway these negatives.

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