Car Lease Special Article
Benefits of leasing
Despite aggressive low-interest financing, cash-back offers and other
purchasing incentives offered by leading auto-makers to buyers, leasing numbers
keep increasing steadily over the years. Leasing is not only an attractive
financial proposition to most auto-consumers, but also a lifestyle and
preference choice.
Benefit Number 1: Keeping up with the latest trends
Leasing is sometimes more of a personal and lifestyle choice than a financial
one. Many people are not comfortable with the idea of owning a vehicle over a
long period of time. They’d rather keep up with the latest trends of the
industry and drive the latest models every two to three years.
Leasing a car gives you the convenience of having the latest technology and
safety innovation, such as an electronic stability system, DVD entertainment
systems and advanced stereo equipment. If you are willing to forego ownership
for the latest set of wheels, than leasing is your best option.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the car. You don’t have to haggle with your
mechanic over repair expenses, deal with hefty maintenance bills or worry about
a depreciating asset. Provided you can keep the vehicle in good condition and
stay within the contracted mileage allowance, you’re effectively getting a test
drive for the length of your lease. At the end of your lease, you can
purchase the vehicle or simply turn in the keys and walk away. No questions
asked.
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. It reduces your initial cash outlay as
you do not have to pay the large down payment required for car ownership. You
only pay for the depreciation on the car - only the part you will use during
your lease, not the entire vehicle. This results in lower monthly payments and
frees even more cash. This cash can be put to use more intelligently elsewhere
than the questionable investment of owning a depreciating asset. If you are
self-employed or use your car for your job, then you can write off your leasing
payment as a business expense.
Benefit Number 4: Negotiating Leverage
Although it may seem a little unorthodox in this industry, almost everything
about leasing is negotiable. If you know all the fees involved, you can lower
your monthly payments, negotiate the purchase price of the vehicle at the end of
the lease and contract additional miles on top of your mileage limit. You
can also do some shopping around and compare deals from different auto-insurers
to get the cheapest GAP insurance for your lease.
