There can be benefits to both buying or leasing a vehicle. For many, leasing a vehicle in Manhattan is the way to go. Ultimately, it is a matter of one’s own priorities. Many people who decide to lease approach it from a dollars and cents point of view. These are people who can look past having to form an emotional attachment with their vehicle. Consider the following advantages to leasing.
1. When leasing, a person will likely pay lower payments. Leasing can also work out better for those concerned about a monthly bill. While those who lease may sometimes to pay a higher rate of interest, the principle portion of their payment is typically less than what a person buying their car pays. This also means that a person sometimes has a better chance of affording a luxury vehicle than they otherwise could.
2. Many who chose to lease also like the idea of owning a new vehicle every several years. These are also people that enjoy access to the latest technology advances. When the lease term is up, they can simply turn the vehicle in and start the process all over again if everything is on the up and up with their prior lease.
3. Many leased vehicles arrive with a three-year warranty. This means 36 months of worry-free maintenance. The warranty covers many of the usual repairs. However, the person leasing should stay on top of the usual maintenance requirements like oil, brake servicing, and transmission fluid changes. The benefits of leasing address the elimination of unforeseen, costly, expenses that can drain bank accounts.
4. There should be no resales worries either for those who choose to lease. Some people simply hate to haggle, and while it is not meant to imply that all dealerships and car lots haggle prices, it does happen. After the lease expires, the lessee simply turns the vehicle in.
5. If there are no problems or concerns, the lessee can simply lease another vehicle. However, that person has to be careful there was no abnormal wear or tear on the vehicle. Otherwise, there may be fees to pay at the end of the lease.
6. Those who lease their vehicle can also look forward to maximizing their tax deductions. A lease can lead to more write-offs, especially if the vehicle is used for business purposes. The IRS allows for financing and depreciation costs that are bundled in each payment. There may be limits to the amount that an individual can write off for luxury vehicles.
7. There may also be ways to exit a lease early. Some dealerships may charge a fee. Or the dealership may arrange for a lease pull-ahead. This is an offer for an early-out if the lessee wants to trade their vehicle in for a new lease.
8. Leasing a vehicle requires a low down payment or no payment in some instances. For many leasing their vehicle, a low down payment is a plus. Leasing sometimes costs less than buying a new vehicle while even driving more miles than expected during the lease term.
9. Some leasing their vehicle may want to ask if their dealer can waive the down payment. The dealer may or not approve it, but there is no harm in asking. The goal is to get the best lease deal possible.
Understanding leasing jargon is always helpful when negotiating a deal:
- Capitalized cost is the same as the vehicle’s selling price. This is something you want to be as low as possible.
- Residual value is the vehicle’s estimated worth at the end of the lease. This is what determines monthly payments.
- Money factor is an interest charge.
- A manufacturer-subsidized lease is what a person can look for. These may be the cheapest ones available. The lessee can usually find these in newspaper ads or auto sections.
Sources like Kelley Blue Book or Edmunds can also provide helpful information like what people are paying for a particular vehicle, and any dealer-manufacturer incentives that might apply. A leasing company can be one of the most helpful sources when it comes time to make the decision to lease a vehicle.