Finding out about what really is best when it comes to leasing versus buying a vehicle seems to be information that is about as elusive as Bigfoot. You can go to a half a dozen different places to buy a vehicle and get just as many different answers. But, there are specific benefits to consider about leasing.
Variety, variety, variety
One of the biggest dilemmas you even begin to consider another vehicle is which one, what color, and do I want all the bells and whistles? It seems like going from dealership to dealership creates buyer’s anxiety about committing to one color and one model for years to come.
If you choose to lease, within two to three years, you can begin to explore that possible second choice on your list that you thought about getting or maybe there’s a brand new model you saw in a magazine that you want to check out and consider as a new lease. The possibilities are endless and attainable if you option to lease instead of buying a car.
Always New and Always Ready
Buying a car is like a long-term relationship—it needs tender care and maintenance from time to time. You have to wash it regularly to make sure rust doesn’t set in over time from all that salt on the roads in winter. Buying new tires from time to time as well as oil changes and bad brakes, or even your transmission blows are all considerations with buying a vehicle.
It takes a lot of money to not only fix these problems but just as much to maintain the vehicle to prevent these from happening in the first place.
Leasing makes these problems virtually go away. With so many competitive deals from dealerships regarding leases and the warranties that are offered, nearly everything that could go wrong with a vehicle during the term of the lease is fully covered as long as you maintain reasonable preventive measures to keep the car in good driving condition. This means taking it for a regular oil change for technicians to do maintenance checks for you that are covered under a lease’s warranty.
Savings and Tax Breaks
First, for anyone who may be tight on extra cash, there is no worry when it comes to leasing and having a down payment—you usually don’t need one and if you do, it is usually negotiable. This will save you between $500-$3,000.
Monthly payments tend to be lower for leases and you will pay at least half the sales tax you would have if you bought a car because sales tax is not part of a monthly payment with a lease.
Secondly, if you buy a car, it becomes your trade-in for a vehicle at some point and has depreciated in value from the moment you drove it off the car lot. This means that when as a bargaining chip for a new car, it may actually end up costing you money. With leasing, if you stick to the mileage agreement, never cost you more than the monthly payment and there is no worry about a de-valued vehicle when you turn it in for a new one.
Many people are not even aware that small business owners are usually eligible for tax breaks of some kind when they lease a vehicle. Businesses can deduct leasing payments on a monthly basis. Depending on the type of business you own and the number of vehicles you need to purchase, this could result in huge overall savings that you did not expect for your company. For anyone considering a lease, you only pay taxes on the lease payments every month and not the actual price of the vehicle as you do when you buy a car.
More Luxury for Less Money
It might sound crazy but leasing will more than likely give you a much more luxurious vehicle. As many as 75% of leased cars fall into the luxury category according to LeaseGuide.com because many people have found that that banks do not usually prefer to agree to car loans of more than $30,000. So, they are more likely to approve a lease for a luxury vehicle than if you tried to acquire a loan to buy one.