There are many advantages to leasing rather than buying your car, and this article will endeavour to describe some of those advantages. Among the many benefits of leasing, this article will focus on how leasing lets you pay less for depreciation, save on cost, and allows you to upgrade your vehicle every few years.
Pay Less For Depreciation
Among the most compelling reasons why you should lease your next car is the fact that you pay less for depreciation when you lease. Many car buyers end up in an upside-down situation where they owe more on the car than it is currently worth, but when you lease, you only pay depreciation for the term of your lease, so if you have a 2-year lease, you pay for 2 years of depreciation, rather than for the total depreciation over the life of the vehicle. In fact, many car owners find that by the time they have paid the interest on their loan, their car has depreciated by 20-40%.
Leasing is also better than buying because initial and ongoing costs are lower. When you lease a car, you do not have to pay a down payment, only a few small administrative fees. In contrast, when you buy a car, the down payment can be considerable. Another advantage is sales tax: a car buyer pays sales tax on the full price of the vehicle at the time of sale, while a lessee only pays taxes on the amount of the monthly payments.
When compared to loan payments, lease payments are routinely 50% lower, a significant difference for those looking for the most affordable option. If you own your own business, you have an additional incentive, as lease payments can be tax deducted. If you use your car only for business, you can deduct the full cost of the lease payments, otherwise, you can deduct a portion of depreciation and finance costs.
Leasing is also better than buying because you frequently get a new car, which means you can enjoy the latest technology as it comes out. Your car will come with the newest safety features and innovations. You won’t have to worry about dealing with the maintenance issues that crop up in older cars because you will never have an old car, and you don’t have to deal with the hassle of selling your vehicle when it’s time for a new one. Instead, once your lease is up you can request the vehicle of your choice.
Leasing is a convenient, cost-effective alternative to buying; it allows you to always be driving the latest model, lets you save on monthly payments, and reduces the amount you pay for depreciation. In addition, you save on down payment and maintenance costs, as well as taxes. You might even find, when you decide to lease your next vehicle, you are able to afford a car you previously considered to be out of your price range. If these factors are important to you, leasing is your best option.