Car leasing was in the past looked upon as a choice available exclusively for the rich and wealthy. However, over the years, car lease deals have begun to pop up at several other dealerships, offering everyone the chance to benefit from the flexibility the product option offers. With car purchases becoming a financially expensive option to choose, and monthly repayment appearing to be on the rise, especially for the latest car models, car lease deals have become more popular.
If you are in the market for a new car, chances are that you may have looked over your car options with respect to your financial prowess and reconsidered some of your decisions. If true, you may want to shift focus away from car purchase to car lease deals.
Choosing car lease deals presents you with a wide range of options and benefits. Below are some you can enjoy;
- You can afford a more expensive car for less
One of the biggest advantages of choosing car lease deals is that you get to own a more expensive car without really paying huge for it. With many people wanting to drive new model and luxury cars, car lease remains one of the best ways to fulfil this goal without necessarily breaking your bank account. Taking into consideration that luxury cars have a high residual value, dealerships tend to be more open to offering deals and fairly reasonable monthly lease payments to customers. This is done to both woo customers and also because there is the possibility that the car will at the end of the lease agreement still carry a high price tag for sale. Car lease offers both flexibility for dealers and customers while both parties enjoy better gains.
- There is little or no down payment with a lease
When choosing to lease a car, there is the need to know the ins and outs of the process so as to get the best deals. One of the most interesting parts of a lease is that you are exposed to little to no down payments and this protects you from the dangers associated with walking around with cash in hand. In addition, the lack of request for down payment also allows you consider the car more of a loan than anything more complex. It is recommended that you pay attention at all times and altogether avoid dealerships that demand down payments as in most cases, you will never be able to access the money paid again.
- Lease payments are typically lower
Another advantage you stand to gain from leasing a car is that you are generally exposed to lesser monthly payments than you would when you are paying for a new vehicle. For lease agreements, you will only be required to pay for the depreciation of the vehicle which comes as part of your usage of it over the lease period. On the other hand, a vehicle purchase exposes you to higher taxes, dealer fees, and other financial charges which may in the end leave a huge hole in your bank account.
- You pay less taxes
Seeing as leasing a car is like renting it, you are saved a whole lot of money in taxes. For tax purposes, a leasor is required to pay only for the amount of percentage they own in the car and this is very low when compared to a car owner who chose to buy it. The difference enjoyed in tax savings may be as much as three times the cost to be paid by the buyer.
- No repair cost accrued to you
Leasing a car presents you with the advantages that do not come accrued to buying a car. One of such advantages is that you are absolved of repair costs on the vehicle as long as you remain an active part of the agreement with the dealership. The dealership handles the warranty and over this period of time, they handle the repairs and maintenance of the vehicle to ensure that it remains in great shape till the end of the lease period. Be sure to check with the dealer however to better understand the repairs and maintenance services which are covered as part of their warranty and lease agreement.
- Leasing is a lot easier than vehicle buying
Buying a car comes practically with a lot of hassles, however, with a good credit rating, you can easily walk into a dealership and out with a new car of your choice on lease. The tricky part however is that you will be required to wait till the end of the lease before turning the car in at the dealership.
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