We get used to thinking that buying a house or any other thing is better than renting. However, the number of people that prefer to lease a car while some still buying vehicles. Despite the fact that buying a new car has certain advantages, leasing also has benefits. In this article, we gathered six reasons to lease a car instead of buying.
1. You are not involved in long-term commitments
The first advantage of car leasing is that it lasts only for several years. This means that when the leasing time comes to the end, you will be able to buy out the leased car or to lease a new vehicle. So if you actually didn’t like the car you leased, you can avoid problems with selling and everything that comes with that. This option is also suitable for those who don’t like to be involved in long-term commitments or like to drive different car models.
2. Lower monthly payments
If you decided to lease a car, you should consider that you will not pay the full cost of the leased vehicle. You simply pay for the depreciation that appears during the lease term and for some additional fees instead. It means that the monthly payments for leasing could be much lower than the monthly loan payments. In addition to this, most leasing agreements provide you with a lower down payment than if you bought the car directly.
3. You are not responsible for the repair
If you have bought a car, all maintenance and repairs will depend on you. You will need to pay for every broken or non-working detail otherwise you will be stuck with a non-functional car. On the contrary, leasing a car will provide you with constant help. This means that all major mechanical failures will be covered but only if they fall under the manufacturer’s warranty. You also need to know that since most leases usually last for several years and leased cars are new or in great condition, the likelihood that the car will continue to be covered by the warranty for the entire lease term is high. If the breakage doesn’t all under the manufacturer’s warranty, many leased cars can have extended warranties. This means that you won’t pay for any serious defects.
4. You can get along without dealerships
If you are not fond of visiting car dealerships and talking with a salesman that will provide you with all kinds of confusing information that you may not be interested in, leasing would be a great option for you. When you will lease a car, you will work with third-party brokers that will help you to bypass a dealership. These brokers are mostly industry experts that are trained to help you in the leasing process. They will provide you with more efficiency than most dealerships promise.
5. You can get certain tax write-offs
If you leased a car for business, you can get certain tax deductions, like depreciation and financial expenses that are included in your monthly payments as well. However, you should know that leased luxury cars may claim less tax write-offs. This option is not usually available to those who buy a car with a loan.
6. You don’t need to resale a car
When the time of the leasing period comes to the end, you can simply pass the car to the dealer and take a new one or walk away. You will have no trouble with selling like finding a buyer, bargaining with strangers, or worry about the documents. Moreover, you will not be hit financially because of the owned car’s inherent value deprecation.
Last updated January 17, 2020