A lot of people get scared off by the idea of leasing a car. Folks seem to be much more in favor of buying now, instead of leasing, but that doesn’t mean you should be, too.
Leasing a car offers plenty of benefits for drivers, so you ought to take the time to figure out which might be better for you.
Let’s take a look at the pros and cons of leasing vs. buying, so you can get clearer picture of which route might be the best for you to take.
Below are the secrets that car salesmen don’t want you to know, so you can know whether you should be buying or leasing cars.
The Case for Leasing a Car
It’s a common misconception that car-leasing is only for rich folks. The truth is, in many ways it’s more about a driver’s lifestyle than it is about their bank account.
A typical lease will last for three years (or sometimes shorter), at the end of which, the driver brings back the car to the leasing agent (usually a car dealership) and trades it in for a new car and a new lease contract.
So if you’re the kind of person who’d like to have a new set of wheels beneath your feet every 3 years or so, it would make far more sense to lease a vehicle, as opposed to buying it.
Another great benefit of leasing is the low upfront costs of doing so. A down payment will typically be much less for starting a new lease contract than buying a new car out-right. And the monthly payments are usually a bare fraction of those you’d send off when buying. For a $30,000 car, the lessee might pay $14,000 over 36 months, while the buyer could have spent close to $35,000 including interest.
Leasing is also a great option for those who can deduct vehicle costs come tax time. Almost every single leasing expense that deals with businesses usage can be deducted.
- New car every 3 years
- Less expensive down payment
- Less expensive monthly payments
- Tax breaks for qualified drivers
So you see, leasing isn’t this terrible, awful, scary thing that only rich people do. It might just be suited perfectly for you.