What Are The Benefits Of Car Leasing?

Car leasing is something that can offer many benefits and advantages. It is often an attractive choice as opposed to buying even though it is not something for every person. In order to decide if it is for you, take a good look at the advantages of car leasing and try to forget all the bad mouthing you may have heard about leasing in general so your choice can be one that is unbiased.

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Benefit Number 1: Lower Payments

Since you are only paying for a specific portion of the vehicle you are leasing, the payments you get can be up to 60% lower than what they would be for an outright purchase.

Benefit Number 2: Zero Down Payments

Leasing a car gives you the option of giving no down payments. However, you have to still make your first payment, pay the title and tag fees, and the registration fees as well. Keep in mind that sometimes there are some deals that are promotional that do require that you provide some sort of down payment. Do your research to see what companies do this so you can steer clear if you do not wish to make a down payment.

Benefit Number 3: Maintenance Headaches are Few and Far Between

The manufactures warranty is typically intact until the end of your lease agreement. This protects you from having to pay out of pocket for certain issues, and prevents you from having to file on your insurance for problems that are covered by the warranty. 99% of the time, any repairs that are required are taken care of quickly by the warranty department of the leasing company. This is actually a major advantage since car repairs can cost nearly as much as the actual car!

Benefit Number 4: Get More Car for Your Money

Because the payments for your leased vehicle are less costly than when you buy, you get more for you money while driving a very nice car. You can even drive a newer vehicle every two to four years, although this will depend upon the lease contract terms.

Benefit Number 5: Lower Taxes

In most place in the United States of America, as well as in Canada, you do not have to pay any sales tax on the leased cars value; but if you purchase a vehicle you will have to pay the sales tax. The only taxes you pay are a portion of what the vehicle’s value is and only for the time you are leasing it. The tax payments are spread out over each month’s leasing payment so you do not have to fork over the entire fee at once. This is extremely helpful to many people who cannot afford to do otherwise.

As you can see, there really are benefits to car leasing; probably more than you had ever imagined. While not everyone will fit the bill to be a car leaser, it is definitely worth looking into as you may be able to find more advantages than you ever thought possible!

Peter Jefferson works as a car leasing (interesting to know is that the Danish term is Billeasing) consultant for Toyota Denmark.