Pros and Cons of Livery Leasing Pros and Cons of Livery Leasing | Page 5

Disadvantages of Livery Leasing
Even though leasing a car seems like a good option, it comes with its set of disadvantages:
• Livery leasing can eventually cost you more than a loan of equivalent an amount, due to the
higher rate of financing charges.
• Once you develop a leasing habit, the monthly payments can go on forever. While the longer
you keep the car after a loan is paid off, the more value you can get out of it.
• When you lease a vehicle you have a limited number of miles in the leasing contract, usually
between 10,000 to 15,000 miles a year. If you exceed this limit an additional amount of money
has to be paid to the dealer ship for every extra mile. While if you drive less there are no
rewards.
• You are not allowed to modify, customize or alter your vehicle in any way.
• Getting out of the lease before it ends can result in early termination fees and penalties which
can cost a lot of money.