In choosing either to lease a new car or rather just buy it, boils down to your priorities.While others prefer to have an emotional and personal connection with to the car others just think it’s more about the dollars and cents involved. So if you want to opt for a lease or just buy a car it is highly important to consider some key factors.
The general set back to leasing a car is that you don’t procure any equity in the car.
Take for instance:
You’re renting an apartment, you make your monthly payments but no ownership authority so when the lease expires it becomes invalid. Therefore, you can’t sell such a car after a few years to buy your next car.
However, there are instances whereby a lease is preferably better compared to buying a new car and which offers you an advantage. The benefits include:
REDUCED INITIAL PAYMENTS
If you find yourself majorly concerned with your monthly bill when you want a car, you need not to be worried as leases offer savings for short-term. Although you might happen to pay more interest, the initial or principal portion of your payment will always low, compared to a loan. As a result of this, those who offer for leases are always able to afford luxurious cars than they actually should be able to.
A lot of car leasing companies offer you a warranty when you lease a car and this lease can last for at least 3 years or 36 months. So if you take out a 3-year lease almost all your repairs will be covered. Leasing arrangements always help you worry less about any unforeseen expenses.
NO WORRIES ABOUT RESALE
If you’re the kind of person who hates arguing then you need not to worry as a lease will surely help you return the car if over time it doesn’t fit your standard. The only thing you need to worry so little about is paying an end of lease fees. This fees will also cover for abnormal wear & tear and other faults on the vehicle.
Most people like to feel a new ride after every few years and they can’t afford to keep buying a new car if they lose interest or tired of their present car. Leasing is the only way to go about it. When the period of the lease is up then you have the freedom to return it and get your new car.
MAXIMIZE TAX DEDUCTIONS
If you happen to be a businessman or woman who uses his or her car for business purposes you tend to be able to afford more tax write-offs than a loan.The reason being that the IRS will allow you to deduct your financing and depreciation costs which are part of your monthly payments. However, the amount you can write off may be limited if you’re leasing a very expensive car.
What is advisable is that if you like to change your car often please opt for a lease as it’ll make a lot of financial sense for you if and only if you know you’re not keeping it for a long term.