Why Lease a Personal Vehicle?
There are many factors to consider when leasing a car. One of the most popular reasons our customers lease is the ability to “write off” their lease payments against their taxes. Many others believe the old adage that you purchase assets that appreciate and lease those that depreciate. Though these are the most popular reasons to lease there are many other benefits:
Lower Monthly Payments
As you are only paying for the portion of the vehicle that is actually being used, monthly payments are significantly lower than financing the same vehicle over the same term.
Lower Maintenance Cost
Many customers like to lease for a term that coincides with the length of the manufacturer’s warranty coverage. This provides the peace of mind that if something goes wrong with the car, the repairs are always covered. This prevents unexpected costs and allows for precise budgeting.
Lower Upfront Cash Outlay
As most leases require little or no down payment, getting into a new vehicle is more affordable and frees up your cash for other things. You can choose to make a down payment, or even trade in your old vehicle. Both of these options will lower your monthly payment amount.
Lower Tax Bite
You don’t pay sales tax on the entire value of a leased vehicle as you would if you purchased. You’re only taxed on the portion of the value that you use during your lease. The tax is spread out and paid along with your monthly lease payment instead of being paid all at once. This again reduces the amount of upfront cash required.
Drive a Newer Car More Often
With lower monthly payments, you get more vehicle for the same money and you can drive a new vehicle every four years or less, depending on the term of your lease. This allows you to enjoy the latest safety features and options on your vehicles.