Before the recession, leasing a car used to be the go-to alternative for people who didn’t clock that many miles per year, as well as for many others, for a wide range of reasons. However, the financial crisis changed all that, while also forcing leasing companies to resort to zero financing, in an effort to restore the industry to its former glory. There are certain benefits to leasing a car in Houston, but one also needs to bear in mind the counter-arguments to it. In the following, we discuss the arguments in favor, those against, as well as the topic of gap insurance in Houston.
Why would you want to lease a car in Houston?
If you live in Houston, don’t own a car, but think that leasing a new vehicle every other couple of years might be a good alternative, here are some of the arguments in your favor:
- The monthly payments are lower, on average, than the installments you’d have to pay in order to purchase your very own vehicle.
- You wouldn’t be responsible for sales taxes for the long-term. According to currently enforced laws, you would only have to pay sales taxes for the span of time during which you use your car on Houston public roads.
- You could benefit from vehicle insurance under the car’s factory-issued warranty. This is because most leased cars rarely ever come to require massive, costly repairs. Since you’d be moving on from one new vehicle to the next, all repairs would be covered by the car’s certificate of warranty.
Why you might decide against leasing a car in Houston
Of course, leasing a car in Houston does come with its downsides – otherwise no one would end up buying cars anymore. Here are some of the most important negatives to consider:
- While a car buyer usually has the whole cost of the vehicle covered for in approximately five years tops, leasers are stuck with paying the leasing bills month in and month out.
- Car leases come with limitations on the mileage that drivers are allowed to clock. Go over the mileage limit and risk paying a heavy penalty. This usually amounts to 10 to 25 cents per mile, while the typical mileage limit is 12,000 miles per year.
- Since a leased car is not yours, you will not be allowed to make any modifications to it. Forget about getting a new car stereo or alarm installed.
Understanding leased car gap insurance in Houston
Having gap insurance in Houston is very important, if you do opt for leasing a vehicle. That’s because the Texas city has a known record of reckless drivers – in the event in which your leased car is damaged in an accident, you will be faced with immense costs. Gap insurance can cover for those costs, within the bounds of the difference between the car’s market price, and whatever amount you had left to pay to your leasing company, at the time when the accident occurred. Coverage for leased cars also extends to anyone on a given driver’s insurance policy, which means anyone covered by your car insurance also gets to drive the car.