When people need a new vehicle, they will want to look at all their options. This will usually involve determining if buying or leasing a vehicle is best for them. It is possible for an individual to have previously only owned a vehicle and not experienced the benefits of having a lease. Getting a vehicle with a lease can provide a person with a number of advantages.
No Down Payment
It’s possible for people to lease a new vehicle without providing a significant down payment. A person will still be required to make the first month’s payment as well as pay for the registration fees and state required tags. A person can put more money down when they initially get a lease as a way to lower the monthly payments.
Lower Tax Obligation
In the majority of states in the U.S., a person is not required to pay sales tax on the value of a leased vehicle. A person who purchases a vehicle will have to pay the entire tax requirement. The tax for a leased vehicle is based on the value of the vehicle during the time of the lease. It’s possible for this tax requirement to be spread out and paid as part of a monthly lease payment.
No Used-Car Worries
When a person leases a vehicle, they do not have to worry about selling their vehicle. When a vehicle is leased, it is given back to the leasing company. Once a lease is complete, a person may still have the option to buy it.
With the monthly payments for a leased vehicle being significantly lower, a person is usually able to get a good deal on a high-end vehicle. A high-end vehicle can be leased by a person for the lower monthly payment. This same payment would get them much less vehicle if they purchased one.
When a person leases a vehicle, they may not have to be concerned with repairs. The reason is the term of a lease often coincides with the length of the vehicle’s manufacturer warranty. This means when the vehicle has problems, the repairs will be covered.
When a person leases a vehicle, it will be subject to mileage limits. It is common to have a limit of up to 12,000 miles. This will work well for a person who routinely does not drive over this amount. Prior to leasing a vehicle, it is recommended a person calculate the number of miles they drive annually. This will help them know if leasing a vehicle will be a good fit for them.
Business Tax Deduction
Should a person drive a car for business, they may be able to deduct a portion of the vehicle’s payments and depreciation on their taxes. The interest on a loan used to finance a vehicle for business is not tax deductible. Prior to doing this, it is best a person speak with a tax professional. This IRS has a variety of calculations for deductions based on what percentage the leased vehicle is driven for the business; its costs and other expenses associated with the vehicle such as gas and more.
Most leasing companies will automatically include free GAP insurance protection on the vehicles they lease. This is insurance designed to pay the difference between what an insurance company will pay and the actual costs of repairs. This will cover vehicles that are in an accident, stolen, damaged from a natural disaster and more. When a person who purchases a vehicle, they are responsible for buying their own GAP insurance protection.
Many people enjoy having an opportunity to experience the latest safety features and high-tech offered in new vehicles. Leasing is an excellent way to make this happen. It is possible for people to lease a new car every few years. Each new car will have the latest features available. There will not be any worry about getting the best possible price for a trade-in. It’s possible for a person to simply drop off their old leased vehicle and walk out with a brand new vehicle in a few hours.
When people want to know the total costs involved with having a vehicle; leasing could be for them. The vehicle will have to be properly maintained. This includes such things as tire rotations, oil changes as well as following all the manufacturer’s maintenance recommendations. These regular maintenance costs can be calculated. Some leasing companies may cover maintenance costs. Leasing a vehicle enables a business owner to calculate the costs of having a vehicle. This is important for making financial decisions regarding a business.
Choosing to lease or buy a vehicle is a big decision. It’s important a person know their situation and budget. Many people are able to see the advantages leasing a vehicle can provide them.