5 Main Benefits of Leasing a Car
Americans are just as dependent on cars as ever before. In fact, recent statistics indicate that more than three-quarters of Americans rely on a car for their daily commutes.
But what if purchasing a car is not the right choice for you? For many people, leasing a vehicle proves to be a better option. Rather than paying to own a vehicle, leasing allows you to pay to use a vehicle for a specified length of time.
Are you wondering whether you should purchase or lease your next vehicle? Keep reading to learn more about the benefits of leasing a car.
1. Lower Monthly Payments
One of the clearest benefits of leasing a car rather than purchasing one is that you will have a lower monthly payment. This is because what you are paying for when you lease a car is different than what you are paying for when you purchase a car.
When you purchase a vehicle, you generally put down a down payment towards the purchase price of the car. Then, your monthly payments go towards paying down the remainder of the balance, as well as interest.
By contrast, when you lease a car, your monthly payment is to essentially cover the depreciation in value of the car while you are using it. This makes the payment lower since you are not paying any interest, nor are you paying to own the car entirely.
Furthermore, most leases come with a significantly lower down payment than if you were purchasing the vehicle. In fact, in some cases, you might have no down payment at all.
With almost 80 percent of Americans living paycheck to paycheck, these lower costs associated with leasing can make it easier to access a reliable vehicle.
2. Newer Car, Newer Technology
One of the arguments sometimes made against leasing is that, for the same price, you could purchase a used vehicle. While this is true in some cases, it also means that you are paying for an older vehicle.
If you look at it on the flip side, when you lease a vehicle, you can get access to a car with the newest technology and safety features for the price of a used vehicle. These days, that means you can get access to features like automatic emergency brakes, and adaptive cruise control. If you have young children or a new driver in your family, these safety features can create peace of mind.
Also, there are entertainment features that are available in newer cars. Many can connect directly to your Apple or Android device, and even feature large touch screens to manage music, navigation, and more.
If you get into the habit of leasing a new vehicle every few years, you will consistently have a vehicle with the newest features. For many drivers, this is more attractive than getting a new car every ten years or so.
3. Warranty and Maintenance
Since you will be driving a newer vehicle, the car will be covered under the manufacturer’s warranty for the duration of the lease. This means that if there are any maintenance problems with the vehicle or with features like brakes or the battery, they will be covered by the warranty.
Also, some leases come with maintenance included in the monthly payment, such as regular oil changes. This can make it easier to afford the upkeep the vehicle needs, as it is already calculated into your monthly cost.
Of course, it’s worth mentioning that since you will be getting a newer vehicle, you are less likely to face maintenance issues. You will be the first person to have driven the vehicle, so you don’t need to worry about whether the previous owner cared for it.
Again, leasing a new vehicle every few years also brings benefits in terms of maintenance. Since you will regularly have new vehicles, you won’t have to worry about your car becoming run down.
4. Tax Benefits
There are several tax benefits associated with leasing a vehicle rather than owning one.
For one, if you use your leased vehicle for business purposes, you can usually write off the entire value of the monthly lease payment on your taxes. But there are also tax benefits even if you do not use your vehicle for business.
In many areas, you will only have to pay sales tax on the value of the down payment. In other places, you may have to pay tax on both the down payment and monthly payment. This is still lower than when you purchase a vehicle and pay sales tax on the purchase price of the car.
5. Easy Trade-In
We’ve mentioned a few times that many of the benefits associated with leasing a car derive from the fact that you can get a new vehicle every few years. But how does that work, exactly?
Basically, when you lease a vehicle, you will have it for a predetermined length of time. Most leases are for a length of 48 to 36 months. At the end of the lease, you bring the car back to the dealership and, if you want, can walk away after paying any final fees.
Many leasers, however, like to make a habit of leasing vehicles. In these cases, you can start a new lease immediately after you finish one. Sometimes, you may be able to get a good deal, such as having fees for extra mileage waived, if you lease cars consistently.
Take Advantage of the Benefits of Leasing a Car Today
Considering these benefits of leasing a car can help you determine if taking out a lease is the right choice for you.
Ready to start driving your next vehicle? Contact us today to get in touch with one of our customer service representatives.