You probably hear commercials all the time about how you can lease a car. Many people are unsure of whether to lease and even more, are unsure of what leasing means. When it comes to cars, there are a lot of financing options that are available to consumers.
Finding the right vehicle might be tough because you are not sure if you are fully committed to owning something right away and need an alternative method of achieving their goal of owning a car.
Leasing is a great option and here are 6 reasons why it could be just what you need.
1. Cars Depreciate in Value
Cars are an asset, but they are not a good long term asset by any means. Owning a car means you are owning something that progressively loses value the longer you use it and the more you use it. When it comes to leasing, you do not really own it and you are essentially just borrowing it so the value depreciating does not affect you at all. This is what kills car owners as they are paying more and more out of pocket to fix a car and it will never get better, so leasing keeps you in the clear of this problem.
2. Potential Tax Deductions
A vehicle, as mentioned, is an asset. For this reason, you can actually claim it depending on what you do but leasing a car allows you to reap the benefits of tax deductions. This is mostly for those who own a small business or are self-employed as your vehicle is then technically a work-related vehicle but this is still a massive benefit if it applies to you.
3. Short Term Ownership Means Warranty Coverage
Leasing cars is not intended for the long term. Most of the time it is so the driver can utilize the vehicle for a few years with no worry of having to shell out a lot of money to get around. With that in mind, you can see how warranty coverage is so lucrative. Owning a car for a long time might mean you eventually are not covered from a factory or dealer warranty but with leasing, it is nearly impossible to go beyond its coverage.
4. Excellent Financing Deals
When it comes to cars, money is going to be a central discussion in finding the right vehicle. Leasing can be beneficial in that you are paying monthly, but also these deals help you get a vehicle without an immediate payment at signing. Zero down payment is something that will make your eyes pop as it helps reduce the financial burden when you need a vehicle. Leasing is really easy to do when you can find deals like these and they help ease any budgetary concerns.
5. Drive in Style
Owning the latest car is going to cost a lot and it would be impossible to ignore the psychological aspect of having a nice, new car. If you want that shiny new model of Honda, Chevy, or Cadillac, then leasing is a good way to go about having something brand new without breaking the bank. After a certain period of leasing, you can upgrade as well. This usually means being more than halfway through your lease agreement but it gives you some breathing room and is definitely a confidence booster to allow you to be cruising in a new model car.
6. Post-Lease Purchasing
After you finish a lease, you actually have the option to buy the car. Using the car allows you to understand how much you actually like it and can be the stepping stone to outright owning your own car. What makes it so good is that you already know the car from your time leasing, whether short or long term. In some cases, the lease agreement may actually help you when it comes to how much you are going to be spending on the car when you choose to buy it. Another great factor is that you have gotten good use out of it for cheap so you know if it needs any work.
The debate rages for many whether they should buy or lease and it is hard to argue against either, but leasing certainly has its advantages that are hard to ignore. Whether you need a new car to feel good driving in style, or you need to find the best deal possible, or even if you want some benefits when it comes to tax deductions, leasing presents itself a more than worthy option for the prospective driver.
Latest posts by Will Hopstetter (see all)
- Don’t Truck Things Up! 7 Truck Maintenance Tips to Keep Up-to-Date - August 10, 2020
- Is It Worth it to Change Your Own Oil? - August 6, 2020