Consumers tend to spend a lot of time thinking about which vehicle they want to drive. They will research brands, models, configurations, and the differences between buying and leasing a car. Many people do not know that there are a lot of advantages that leasers enjoy.
The Cheapest Luxury Car You Will Ever Drive
If you want to make a good impression on your friends and colleagues, you will probably opt for a luxury vehicle. Unfortunately, that is typically not an option if you want to actually buy a car. However, most leasing organizations do offer a wide range of luxury models. This is because luxury models have a high residual value. Residual value is the value of a vehicle after it has fully depreciated. Further, since you are only paying for the contract, you will not have to worry about the long-term loan payments that are usually associated with luxury models.
The Cheapest Rental Car You Will Ever Drive
A lease on a vehicle is sort of like a lease on an apartment. It is like you are renting it for awhile. But rather than making daunting loan payments, you are just paying the monthly rental fee along with relevant taxes.
Drive A New Car Every Few Years
When a consumer buys a new vehicle, she is typically pretty excited about it. But that excitement fades away after a little while. If you perpetually lease vehicles, you can enjoy a new car every couple of years. Suppose you bought a 2013 car in 2013. By 2017, there are a host of new features that you are missing out on. Leasing will allow you to enjoy every new advancement that comes out of the industry.
Low Down Payments
Some people have to save for years just for the down payment on a new car. The down payment can be up to 20% of the value of the car. Most of us do not have thousands of dollars to spare. Leases are a great alternative because you only have to pay the for the first month as a down payment. That will make leases ideal for people who are in a financial crisis and need a new car as soon as possible.
We have all heard the cliché of the broke college student. Unfortunately, it is not too far from the truth. Leases will help to create a manageable budget. Beyond that, after the student graduates, she will not be committed to that vehicle. There are many other people in similar situations. If you are on a temporary work visa or a work contract spanning a few years, a leased car will align well with that situation.
Worried About Repairs?
The dreaded Check Engine light appears in your vehicle. Depending on what needs to be repaired, it could send you into debt. If you own the vehicle, you will be solely responsible for the repairs. However, most leasing organizations offer coverage for repairs. If you get an extended warranty, they might even cover maintenance fees, such as oil changes. This would seriously reduce the expenses associated with your vehicle.
If you are leasing your vehicle for business purposes, you can probably get a tax break when April comes around. Most of us do use our vehicle for business purposes. We have to drive to work. If you are a salesperson, you probably use it for business purposes more than the rest of us.
Beyond that, there is an obvious tax break for everybody who leases a car. When you purchase a car, you have to pay a property tax. A property tax on a $20,000 vehicle will be hefty. But if you have the same vehicle on a lease, then you only have to pay property taxes on the cost of the lease.
Leasing is a very wise decision. It comes with tax breaks, no long-term commitment, lower monthly payments and the opportunity to drive a new car every few years.