Most people are skeptical about leasing vehicles because the ownership reverts to the dealer at the end of the agreed period. Thus, many people do not understand how one can just part with a car after using it for such a period. However, this skepticism comes from a lack of knowledge of all the benefits that come with leasing a car. For people living in Minneapolis, there are many deals that are in place to help them get the best car at the best possible rates. Outlining some of the reasons that can motivate people to lease cars can help shed more light on the subject.
Exciting vehicle choices
The vehicle industry keeps on producing newer models every year. These cars are equipped with the latest technology the market has to offer. They are stylish, more fuel efficient, and are guaranteed to turn heads everywhere. Lessees enjoy the benefit of changing the vehicle model every few years. These upgrades put them above those who own their cars. The latter individuals cannot just change their vehicle models as that would involve a significant cost undertaking. As such, it is possible for a lessee to never drive a car older than three years while owner are stuck with jalopies for almost a decade.
Leases are short term deals meaning that the car will be in the possession of the lessee while it still covered by the automaker’s warranty. Most of the warranties issued by manufacturers often go beyond 36 months. This means that the lessee will have a significant range of repair costs borne by the automaker. This is a great deal since the manufacturer is best placed to repair the vehicle. The only costs that the lessee will have to bear are fuel costs.
Lower monthly costs
When compared to financing the purchase of a new vehicle, the monthly payments involved in leasing are considerably less. Sure, this is occasioned by the fact that the buyer pays for the whole car while the lessee only pays for depreciation. However, if the customer does not wish or is still unsure about shelling the full price to own a car, leasing is the best option.
No reliability worries
When researching on a vehicle to purchase, one of the considerations that buyers make regards the future reliability. The customers want to know if the vehicle will still be in good running condition 8 or 10 years down the line. They will want to know the propensity for the vehicle material to get rusty, the wear and tear of the interiors, and chipping of the paint, among others. This is usually not a concern for lessees since they have possession of the car for a short period when it is new. They are, therefore, guaranteed usage of the car when it is in its best condition.
If a business leases a car rather than purchases, it stands to gain some tax benefits. The taxes levied on a leased car are based on the monthly payments while those of a new car are based on the sales price. As such, the business can deduct more taxes if it leases than if it buys cars. In this manner, the business saves money on leasing rather than financing.
Option to buy
At the end of a lease, the lessee has the option of either turning in the vehicle and getting a new one, or buying the one he already has. This is helpful if the individual develops a connection with the car and soon desires its ownership. Such a person is saved the hassles involved in going to look for a vehicle in the used car market. He already knows the history of the leased car and can, therefore, know what he is getting into. In essence, leasing a car in Minneapolis can be like a long term test drive before making the decision to purchase the vehicle.
Low upfront costs
When financing a motor vehicle, the dealers will often require a significant amount as down payment. This is meant to act as insurance or leverage against the purchaser to make sure that the dealer has some amount of money should the borrower default. When leasing, the case is different as no down payment is necessary and if it is, it is often low and affordable. This makes leasing a better option as compared to buying with regards to the upfront costs.
Having a car adds a lot of convenience to a person’s daily life. It can also come with significant costs depending on the mode of acquisition. Buying a car is more costly than leasing and should only be done if ownership is a pressing concern. However, for those in Minneapolis that like to enjoy a new model of a care every few years, leasing is the best option.