Licensing Advantages And Disadvantages

Saturday, October 30, 2021 11:00:51 PM

Licensing Advantages And Disadvantages

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What is a Licensing Agreement?

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You can drop-and-go when your lease is up. Dealerships often offer the option to purchase a car after the lease period expires. Drivers can avoid the initial sales tax and down payment requirements in some jurisdictions. Leasing companies charge a fee to originate the agreement at the dealership. It can be called an acquisition fee, a bank charge, or an administrative cost. You must prove that you have a stable income source to lease a car. This issue can be problematic for contractors, self-employed individuals, and people who work seasonally. Even if you do receive approval to lease a car in these circumstances, then you must have a way to make your monthly payment obligations.

Failing to make a payment can lead to repossession, credit score problems, and more. Most insurers will require you to purchase gap insurance. Whether you buy it directly from your dealership or through an insurance provider of your choice, gap insurance is almost always required when leasing a car. Most of the policies remain in effect for at least three years, and it may be part of the upfront costs that you pay to start the agreement.

If you were going to buy a car instead, then this charge becomes optional. You can choose to take on the risk personally if you prefer. Leasing agreements restrict how you can use the new car. You might need to report to the dealer for an odometer reading in extreme circumstances over the lifetime of the lease. Most leases allow you to drive between 12, to 15, miles per year.

It can be several thousand dollars of additional expenses if you violate these terms and conditions. The dealership might still require a significant down payment. You need to have a significant amount of money available as a down payment if you want to lease a vehicle. This cost covers the licensing fees, initial payment, and miscellaneous costs as outlined by the agreement. When you consider the average lifespan of a six-year ownership period, the one advantage that a lease offers is the option to upgrade the car. That means a second significant down payment is also required. Your lease will specify the exact number of miles allowed over the agreement. You might have extra wear-and-tear fees to pay because of this issue, reducing the financial benefits of this approach.

If you need to get out of your monthly payments because your financial situation changes, then leasing a car provides few options. When you buy a vehicle, you can transfer the loan to someone else with the permission of the lender. It can be more expensive to lease a car than to purchase one. Leasing typically costs more in a long-term perspective than buying.

Once you go beyond that time, then the lack of payments for a purchased vehicle will create more financial benefits. When dollars and cents are the top priority, then looking for financing options could be a better choice. You lose the option to make modifications to the car. Dealerships do not allow you to make any modifications to a leased vehicle. Tinting or restoration work may be exceptions to this disadvantage, but you cannot change the engine, exhaust system, or other options unless you remove them before delivering the car at the end of the term.

If you bring the car in for regularly scheduled maintenance and mods are present, then it might be a violation of the agreement. Your monthly payments never stop when you choose to lease. The issue with leasing is that you never receive a reprieve from the monthly payments. When you own a car, then you will eventually pay off a loan. You can even purchase one outright with cash or credit to avoid the financing process altogether. This issue may not be a problem for some households because it is a predictable expense, but it could be a crucial consideration for others.

Some states require you to pay an additional tax on a car lease. RCW That means you must pay this additional amount with the agreement. On April 20, , Dylan Klebold and Eric Harris brought firearms to their high school and killed 13 people before taking their own lives. The history of mass shootings in the United States is one that tells a dark chapter. In , a group of white citizens in Louisiana killed and hung up to African-American citizens. In , US soldiers took machine guns into a Lakota village and killed men, women, and children. In , white citizens in Tulsa set African-American neighborhoods on fire and then shot at those who fled, killing upwards of people.

Here are some of the key points to think about. Most mass shootings in the US come from legally purchased firearms. Mother Jones reviewed over 70 mass shootings in the United States that covered more than 3 decades of incidents. By creating more restrictions on legal purchases, it may be possible to reduce the number of mass casualty incidents that occur. Having access to a gun increases the risk of violence. According to a study by Linda Dahlberg, simply having a firearm in a home increases the risk of a homicide or a suicide occurring.

That increase remains no matter how many guns are owned or how safely they are locked in a gun safe. The New England Journal of Medicine published a study by Arthur Kellerman that shows people living in a home face a risk of homicide that is 40 times higher than people in a home without a firearm. The risk of a firearm-related suicide is 90 times higher when a gun is in a home. Private-sale exemptions exist under US law that do not require a background check on the individual. The Brady Bill states that private sellers can sell a firearm to an unlicensed resident of the state where they live as long as they do not know or have a reasonable cause to believe that person should be prohibited from owning a firearm. Although some state laws have closed this loophole, it is still possible for people who are restricted from owning firearms to still purchase one.

Gun control legislation could stop this from happening. Gun control does not require confiscation. There is a right to bear arms for self-defense in the United States, protected by state laws and the Constitution. The US Supreme Court has struck down handgun restriction laws because of this right. Something as simple as licensing and requiring an understanding of how to use it could reduce gun violence. Funds could even be set aside so that licensing and safety classes are low-cost or free. It could reduce accidental injuries. Unintentional shootings caused the deaths of over people in From , more than 1, people who were the victim of an unintentional shooting were under the age of Even in gun control legislation included safety measures alone, lives could be saved.

Gun control legislation would likely create a black market. That is a pretty basic principle that applies to legal and illegal gun owners.

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