What Are the Benefits of Leasing Versus Buying?
There is more than one option on how to obtain a new vehicle. Buying a new car, truck or bus is not always the best choice for your situation. There are a few different reasons why leasing may be the best option for you and your team.
Why Lease Your Next Vehicle?
There is a difference in the monthly payment for a leased car and financing a bought car. Depending on what your monthly pay is, it may be beneficial to you to lease a car. When you are leasing, the depreciation is what you are paying for during those years, rather than when you own it and you are paying off the entire car. Because of this, you may be able to have more money month to month if the car, even at the same price, is leased versus owned. Another financial factor is that the down payments on a leased car are often way less or even waived. If having a lot of cash up front is going to be a factor, then a lease is a good entry point to having the car that you want. In addition, the sales tax will be smaller as well.
If you are someone that is not on the road very often, you could avoid the extra mile fees that come with leases. Many times companies will expect you to do this, so if you do not drive very often it could be in your favor to hang out without that fee even though they are expecting you to go over and need to pay it. This parallels taking good care of the car. For people who dent and scratch their cars, there will be fees associated with that. You will be met with no charges if you keep your car as it is, which is nice because the fees are usually adjusted expecting people to hurt the car in some way. If you take extra good care of it, then you are not going to be penalized in any way.
If the driving you are doing in your leased car is for business, there are ways you can take the depreciation costs and the financing of it as a deduction on your taxes. This is a big benefit to leasing over buying because you cannot deduct the financing of a purchased car on your taxes.
The freedom that is more and more apparent in how people are living their lives today make leasing a car make even more sense. You may be working in a city for a few years, but have intentions of transitioning into having a lot more off-time and time to play in the mountains after that. It would make a lot of sense to have a smaller car for the years you are in the city, but it would be much better to have a bigger car for when your life is calling for more time in the mountains. The ability to change cars every few years is flexibility that matches how so many people are living their lives these days.
What Should You Pay Attention to When You Lease?
There are a lot of benefits to leasing over buying, but you must pay attention to make sure you do it right and stay on the positive side of it. If you only need a car for a certain, fairly short amount of time, leasing certainly makes a lot of sense. Make sure that you do not end up stopping your lease before you planned to or you will be charged up to six months cost for cancelling early.
Otherwise, all of these things are great reasons to consider leasing instead of buying. While the old school thought process is that buying is better, you can see that there are many reasons why this new school of thought is very valid. See what you can get with Lehman today!