Leased Cars Instead of Clunkers are Popular for High SchoolersPosted on Sep 27, 2011
Rather that enter a new full-term lease, parents typically take over the remaining 12 to 14 months of an existing lease.
* No long-term commitment on car payments.
* Most vehicles are only 1 to 2 years old, with excellent saftey records.
* No down payment.
* Lease contract expires around the same time son or daughter heads off to college.
* No car after a year.
*Insurance costs are higher for newer cars. And leasing companies often require additional insurance to cover their losses if the car is damaged.
* Mileage limit restrictions result in extra charges if you exceed the remaining allotted miles outlined in the lease terms, which typically run from 8,000 to 14,000 miles.
*Upkeep costs could be higher than on a car you own, because this is the bank's vehicle and you will be held to certain standards fro regular maintenance.